Stability and the chain store paradox
Article Abstract:
The Chain Store Paradox, as proposed by Selten and elaborated on by Kreps and Wilson, is discussed. It describes the existence of a situation of perfect equilibrium that results when the monopolist remains complacent to the entry of new competitors. This hypothetical equilibrium situation, however, is contrary to a result that would be obtained intuitively and from the standpoint of rational economic thinking.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1995
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Information in conflicts
Article Abstract:
A two-player contest for a common prize is considered, where the value of the prize is uncertain. When one player knows the value of the prize and the other player knows only about its prior distribution, then the uninformed agent is more likely to win the prize than the informed agent.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2003
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A global Newton method to compute Nash equilibria
Article Abstract:
Using Kohlberg and Mertens' structure theorem, homotopy method of Eaves can be represented as a dynamical system and implemented by Smale's global Newton method. These two methods are combined to compute Nash equilibria of finite games.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2003
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