  We analyze the schema theorem and the building block hypothesis using a
recently derived, exact schemata evolution equation. We derive a new schema
theorem based on the concept of effective fitness showing that schemata of
higher than average effective fitness receive an exponentially increasing
number of trials over time. The building block hypothesis is a natural
consequence in that the equation shows how fit schemata are constructed from
fit sub-schemata. However, we show that generically there is no preference for
short, low-order schemata. In the case where schema reconstruction is favoured
over schema destruction large schemata tend to be favoured. As a corollary of
the evolution equation we prove Geiringer's theorem. We give supporting
numerical evidence for our claims in both non-epsitatic and epistatic
landscapes.
