Title

A Qualitative Characterization of Symmetric Open-Loop Nash Equilibria in Discounted Infinite Horizon Differential Games

Authors

Authors

C. Ling;M. R. Caputo

Comments

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Abbreviated Journal Title

J. Optim. Theory Appl.

Keywords

Symmetric open-loop Nash equilibria; Local stability; Steady state; comparative statics; Local comparative dynamics; STICKY PRICES; OLIGOPOLY; Operations Research & Management Science; Mathematics, Applied

Abstract

The local stability, steady state comparative statics, and local comparative dynamics of symmetric open-loop Nash equilibria for the ubiquitous class of discounted infinite horizon differential games are investigated. It is shown that the functional forms and values of the parameters specified in a differential game are crucial in determining the local stability of a steady state and, in turn, the steady state comparative statics and local comparative dynamics. A simple sufficient condition for a steady state to be a local saddle point is provided. The power and reach of the results are demonstrated by applying them to two well-known differential games.

Journal Title

Journal of Optimization Theory and Applications

Volume

149

Issue/Number

1

Publication Date

1-1-2011

Document Type

Article

Language

English

First Page

151

Last Page

174

WOS Identifier

WOS:000287757500008

ISSN

0022-3239

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