Perfect foresight and equilibrium selection in symmetric potential games

Article Abstract:

Two methods of equilibrium selection were demonstrated to be equivalent for symmetric two-person potential games. The first, which was introduced by Matsui and Matsuyama for 2-by-2 matrix game, employs an explicit dynamic context to choose equilibria which are globally available and assimilative in terms of the dynamics. The second method, which is usable in potential games, chooses equilibria which maximize the potential function. It was shown that a symmetric Nash equilibrium of a potential game is globally accessible as well as absorbing for all minor values of the discount rate only if the potential function is maximized by the strategy.

Game theory, Differential equations, Partial, Partial differential equations

---

Convexivity and sunspots: another remark

Article Abstract:

Economies with convex preferences and non-convex production technologies can display non-degenerate sunspot equilibria, even if each firm's production set is the Cartesian product of sunspot-independent production sets. An example answers a question put forth in the paper of D. Cass and H.M. Polemarchakis. Also, one of the proofs in the Cass-Polemarchakis paper is corrected.

Economic aspects, Sun-spots, Sunspots, Variables (Mathematics)

---

Consistent planning under quasi-geometric discounting

Article Abstract:

The properties of stationary Markov-perfect equilibria in a general model of intertemporal choice under quasi-geometric discounting are studied. In contrast to model with geometric discounting, models with quasi-geometric discounting can generate chaotic dynamics for arbitrary low time-preference rates.

Models

Similar abstracts:

• Abstracts: Efficient equilibrium selection in evolutionary games with random matching. The evolution of rationality and the Red Queen
• Abstracts: Russia's foreign trade: new directions and western policies. Trade Policy During the Transition: Lessons from the 1990s
• Abstracts: Imperfect foresight and chaos: an example of a self-fulfilling mistake. A spatial-temporal model of human capital accumulation
• Abstracts: Temporary and permanent government spending in a small open economy. Money, politics and the post-war business cycle
• Abstracts: Labor market policies and unemployment in the Czech Republic. Sectoral restructuring and labor mobility: A comparative look at the Czech Republic

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.