A Qualitative Characterization of Symmetric Open-Loop Nash Equilibria in Discounted Infinite Horizon Differential Games
Abbreviated Journal Title
J. Optim. Theory Appl.
Symmetric open-loop Nash equilibria; Local stability; Steady state; comparative statics; Local comparative dynamics; STICKY PRICES; OLIGOPOLY; Operations Research & Management Science; Mathematics, Applied
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 of Optimization Theory and Applications
"A Qualitative Characterization of Symmetric Open-Loop Nash Equilibria in Discounted Infinite Horizon Differential Games" (2011). Faculty Bibliography 2010s. 1567.