Publication:
On the stability of best reply and gradient systems with application to imperfectly competitive models

Thumbnail Image
Identifiers
URI: http://hdl.handle.net/10016/3812
ISSN: 0165-1765
DOI: 10.1016/0165-1765(95)00752-0
Files
CORCHON_1996_51_CL_ps.pdf (564.13 KB)
Publication date
1996
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Impact
Google Scholar
Export
Research Projects
Organizational Units
Journal Issue
Abstract
We present a general result on the convergence to an equilibrium of class of dynamic adjustment procedures which includes gradient systems and best reply dynamics as special cases - when there are two players and strategy sets are one dimensional. We also show that there are no restrictions on the form of the gradient or best reply dynamics, even under strong restrictions on the functional form of both demand and costs. This implies that we can construct examples with three players where the above dynamical procedures yield chaotic behavior.
Description
Keywords
Gradient, Best reply, Chaos, Stability
Bibliographic citation
Economics Letters. 1996, vol. 51, p. 59-65
Collections
DE - Artículos de Revistas
Economists Online