IDEAS home Printed from https://ideas.repec.org/p/cir/cirwor/2000s-08.html
   My bibliography  Save this paper

Semi-Stationary Equilibrium in Leader-Follower Games

Author

Listed:
  • Ngo Van Long
  • Koji Shimomura

Abstract

We show that in some leader-follower games, a steady-state equilibrium in quantities may exist only with non-stationary shadow prices. We call this type of equilibrium a semi-stationary steady state. Conclusions that are drawn on the assumption that a steady-state equilibrium has stationary shadow prices may turn out to be incorrect, because such a fully stationary steady state may not exist. Nous démontrons que dans certains jeux de leader-followers, un état stationnaire n'existe qu'avec des prix fictifs non-stationnaires. Ce type d'équilibre est nommé équilibre semi-stationnaire. Les conclusions basées sur l'hypothèse que les prix fictifs sont stationnaires peuvent s'avérer fausses.

Suggested Citation

  • Ngo Van Long & Koji Shimomura, 2000. "Semi-Stationary Equilibrium in Leader-Follower Games," CIRANO Working Papers 2000s-08, CIRANO.
  • Handle: RePEc:cir:cirwor:2000s-08
    as

    Download full text from publisher

    File URL: http://www.cirano.qc.ca/files/publications/2000s-08.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kemp, Murray C & Long, Ngo Van & Shimomura, Koji, 1993. "Cyclical and Noncyclical Redistributive Taxation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(2), pages 415-429, May.
    2. Sanjay Banerji & Ngo Van Long, 2000. "Wealth Distribution, Moral Hazard, and Entrepreneurship," CIRANO Working Papers 2000s-01, CIRANO.
    3. Judd, Kenneth L., 1985. "Redistributive taxation in a simple perfect foresight model," Journal of Public Economics, Elsevier, vol. 28(1), pages 59-83, October.
    4. Xie, Danyang, 1997. "On Time Inconsistency: A Technical Issue in Stackelberg Differential Games," Journal of Economic Theory, Elsevier, vol. 76(2), pages 412-430, October.
    5. Léonard,Daniel & Long,Ngo van, 1992. "Optimal Control Theory and Static Optimization in Economics," Cambridge Books, Cambridge University Press, number 9780521331586.
    6. Marcel Boyer, 1999. "Les Expos, l'OSM, les universités, les hôpitaux : Le coût d'un déficit de 400 000 emplois au Québec = Expos, Montreal Symphony Orchestra, Universities, Hospitals: The Cost of a 400,000-Job Shortfall i," CIRANO Papers 99c-01, CIRANO.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karp, Larry & Lee, In Ho, 2003. "Time-consistent policies," Journal of Economic Theory, Elsevier, vol. 112(2), pages 353-364, October.
    2. Chakraborty, Bidisha & Gupta, Manash Ranjan, 2009. "Human capital, inequality, endogenous growth and educational subsidy: A theoretical analysis," Research in Economics, Elsevier, vol. 63(2), pages 77-90, June.

    More about this item

    Keywords

    Leader-follower; dynamic games; Leader-follower; jeux dynamiques;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:cirwor:2000s-08. 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: (Webmaster). General contact details of provider: http://edirc.repec.org/data/ciranca.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.