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Correspondence principles for concave orthogonal games


  • Michael J. Stutzer


Silberberg [6] and Pauwels [2] have produced and clarified seminal results in the comparative statics of single-agent classical optimization problems. This paper extends Pauwels’ method to derive analogous results for stable Nath equilibria in a subclass of the widely used class of concave orthogonal games defined by Rosen [3]. Application of these results to cost curve shifts in the asymmetric Cournot oligopoly immediately uncovers apparently new comparative statics results.

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  • Michael J. Stutzer, 1984. "Correspondence principles for concave orthogonal games," Staff Report 90, Federal Reserve Bank of Minneapolis.
  • Handle: RePEc:fip:fedmsr:90

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    1. Seade, Jesus K, 1980. "On the Effects of Entry," Econometrica, Econometric Society, vol. 48(2), pages 479-489, March.
    2. Spence, Michael, 1976. "Product Differentiation and Welfare," American Economic Review, American Economic Association, vol. 66(2), pages 407-414, May.
    3. Pauwels, Wilfried, 1979. "On some results in comparative statics analysis," Journal of Economic Theory, Elsevier, vol. 21(3), pages 483-490, December.
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