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The existence of Nash equilibria in n-player LQ-games, with applications to international monetary and trade agreements

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  • Di Bartolomeo Giovanni
  • Acocella Nicola
  • Hughes Hallett Andrew

Abstract

The paper studies the relationship between equilibrium existence in LQ games and the classical theory of economic policy, generalizing some recent results. In particular, by focusing on system controllability instead of the controllability by one or some of the players, we find conditions for the existence of the Nash equilibrium that extend those required by the previous literature. The usefulness of our results is described by some examples in the field of international monetary and trade agreements.

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File URL: http://wp.comunite.it/data/wp_no_40_2008.pdf
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Bibliographic Info

Paper provided by Department of Communication, University of Teramo in its series wp.comunite with number 0040.

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Date of creation: Apr 2008
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Handle: RePEc:ter:wpaper:0040

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Web page: http://wp.comunite.it/

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Cited by:
  1. Hughes Hallett Andrew & Di Bartolomeo Giovanni & Acocella Nicola, 2008. "Controllability under rational expectations," wp.comunite 0042, Department of Communication, University of Teramo.
  2. ACOCELLA, Nicola & DI BARTOLOMEO, Diovanni & PIACQUADIO, Paolo G., . "Conflict of interests, (implicit) coalitions and Nash policy games," CORE Discussion Papers RP -2236, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Acocella Nicola & Di Bartolomeo Giovanni, 2010. "Conflict of interest and coordination in public good provision," Politica economica, Società editrice il Mulino, issue 3, pages 389-408.

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