Nash Equilibrium and Robust Stability in Dynamic Games: A Small-Gain Perspective

This paper develops a novel methodology to study robust stability properties of Nash equilibrium points in dynamic games. Small-gain techniques in modern mathematical control theory are used for the first time to derive conditions guaranteeing uniqueness and global asymptotic stability of Nash equilibrium point for economic models described by functional difference equations. Specification to a Cournot oligopoly game is studied in detail to demonstrate the power of the proposed methodology.

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Year of publication:	2010-01-07
Authors:	Karafyllis, Iasson ; Jiang, Zhong-Ping ; Athanasiou, George
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Dynamic game \| Cournot oligopoly \| Nash equilibrium \| Robust stability \| Small gain

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Notes:	Published in Computers and Mathematics with Applications 11.60(2010): pp. 2936-2952
Classification:	C0 - Mathematical and Quantitative Methods. General ; C02 - Mathematical Methods ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; C70 - Game Theory and Bargaining Theory. General ; C62 - Existence and Stability Conditions of Equilibrium
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008776877