  We discuss a model of an economic community consisting of $N$ interacting
agents. The state of each agent at any time is characterized, in general, by a
mixed strategy profile drawn from a space of $s$ pure strategies. The community
evolves as agents update their strategy profiles in response to payoffs
received from other agents. The evolution equation is a generalization of the
replicator equation. We argue that when $N$ is sufficiently large and the
payoff matrix elements satisfy suitable inequalities, the community evolves to
retain the full diversity of available strategies even as individual agents
specialize to pure strategies.
