Abstract

From a game theoretic point of view, fraudulent accounting to em-bellishnthe financial status of a firm and the use of drugs to enhancenperformance in sports are very similar. We study the replicator dy-namicsnof both applications within the same model. We allow for het-erogenousnpopulations, such as highly talented versus more mediocrenathletes, or high quality managers versus less able colleagues. Inter-estingly,nfor some parameters, the replicator dynamics is character-izednby cycles. Thus, we may see cycles of doping and clean sport,nand cycles of fraudulent and honest accounting. Moreover, in somencases, high ability players are more likely to commit fraud than lownability types.