Nash Equilibrium and Robust Stability in Dynamic Games: A Small-Gain Perspective
This paper develops a novel methodology to study robust stability properties of Nash equilibrium points in dynamic games. Small-gain techniques in modern mathematical control theory are used for the first time to derive conditions guaranteeing uniqueness and global asymptotic stability of Nash equilibrium point for economic models described by functional difference equations. Specification to a Cournot oligopoly game is studied in detail to demonstrate the power of the proposed methodology.
|Date of creation:||07 Jan 2010|
|Date of revision:||23 Sep 2010|
|Publication status:||Published in Computers and Mathematics with Applications 11.60(2010): pp. 2936-2952|
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Web page: http://mpra.ub.uni-muenchen.de
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