Runs, Panics and Bubbles: Diamond-Dybvig and Morris-Shin Reconsidered
The basic two-noncooperative-equilibrium-point model of Diamond and Dybvig is considered along with the work of Morris and Shin utilizing the possibility of outside noise to select a unique equilibrium point. Both of these approaches are essentially nondynamic. We add an explicit replicator dynamic from evolutionary game theory to provide for a sensitivity analysis that encompasses both models and contains the results of both depending on parameter settings.
|Date of creation:||Aug 2012|
|Publication status:||Published in Annals of Finance (November 2014), 10(4): 603-622|
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