The Theory of Strategic Evolution: Games with Endogenous Players and Strategic Replicators

This paper develops the Theory of Strategic Evolution, a general model for systems in which the population of players, strategies, and institutional rules evolve together. The theory extends replicator dynamics to settings with endogenous players, multi level selection, innovation, constitutional change, and meta governance. The central mathematical object is a Poiesis stack: a hierarchy of strategic layers linked by cross level gain matrices. Under small gain conditions, the system admits a global Lyapunov function and satisfies selection, tracking, and stochastic stability results at every finite depth. We prove that the class is closed under block extension, innovation events, heterogeneous utilities, continuous strategy spaces, and constitutional evolution. The closure theorem shows that no new dynamics arise at higher levels and that unrestricted self modification cannot preserve Lyapunov structure. The theory unifies results from evolutionary game theory, institutional design, innovation dynamics, and constitutional political economy, providing a general mathematical model of long run strategic adaptation.