Information lag and dynamic stability
The role of information in economic dynamics is examined. A misconception that the removal of uncertainty always brings additional stability to an existing equilibrium is clarified. It is shown that the relation between information and equilibrium stability is not monotonic. Removing information lag may be either beneficial or detrimental to the stability of an economic equilibrium. Although the focus is on two-dimensional economic system where economically plausible possibilities are studied in theory and numerically illustrated, the conclusions have general implications to any multi-dimensional system.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huang, Weihong, 2003. "A naive but optimal route to Walrasian behavior in oligopolies," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 553-571, December.
- Howroyd, T. D. & Russell, A. M., 1984. "Cournot oligopoly models with time delays," Journal of Mathematical Economics, Elsevier, vol. 13(2), pages 97-103, October.
- Invernizzi, Sergio & Medio, Alfredo, 1991. "On lags and chaos in economic dynamic models," Journal of Mathematical Economics, Elsevier, vol. 20(6), pages 521-550.
- Seale, Darryl A. & Daniel, Terry E. & Rapoport, Amnon, 2001. "The information advantage in two-person bargaining with incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 44(2), pages 177-200, February.
- Vives, X., 1988.
"Information And Competitive Advantage,"
UFAE and IAE Working Papers
100-88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Chokler, Adi & Hon-Snir, Shlomit & Kim, Moshe & Shitovitz, Benyamin, 2006. "Information disadvantage in linear Cournot duopolies with differentiated products," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 785-793, July.
- Sakai, Yasuhiro, 1985. "The value of information in a simple duopoly model," Journal of Economic Theory, Elsevier, vol. 36(1), pages 36-54, June.
- Huang, Weihong, 1995. "Caution implies profit," Journal of Economic Behavior & Organization, Elsevier, vol. 27(2), pages 257-277, July.
- Einy, Ezra & Moreno, Diego & Shitovitz, Benyamin, 2002. "Information Advantage in Cournot Oligopoly," Journal of Economic Theory, Elsevier, vol. 106(1), pages 151-160, September.
When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:44:y:2008:i:5-6:p:513-529. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.