The Intrinsic Comparative Dynamics of Locally Differentiable Feedback Nash Equilibria of Autonomous and Exponentially Discounted Infinite Horizon Differential Games
AbstractThe comparative dynamics of locally differentiable feedback Nash equilibria are derived for the ubiquitous class of autonomous and exponentially discounted infinite horizon differential games. The resulting refutable implications are intrinsic to the said class of differential games, and thus form their basic, empirically testable, properties. Their relationship with extant results in optimal control theory and static game theory is discussed. Separability conditions are identified on the instantaneous payoff and transition functions under which the intrinsic comparative dynamics collapse, in form, to those in optimal control problems. Applications of the results to capital accumulation and sticky-price games are provided.
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Bibliographic InfoPaper provided by University of Central Florida, Department of Economics in its series Working Papers with number 2012-03.
Length: 29 Pages
Date of creation: Jul 2012
Date of revision:
comparative dynamics; differential games; feedback Nash equilibria;
Other versions of this item:
- Caputo, Michael R. & Ling, Chen, 2013. "The intrinsic comparative dynamics of locally differentiable feedback Nash equilibria of autonomous and exponentially discounted infinite horizon differential games," Journal of Economic Dynamics and Control, Elsevier, vol. 37(10), pages 1982-1994.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
- NEP-GTH-2012-08-23 (Game Theory)
- NEP-MIC-2012-08-23 (Microeconomics)
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