Abstract
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 a 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.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 2936-2952 |
| Number of pages | 17 |
| Journal | Computers and Mathematics with Applications |
| Volume | 60 |
| Issue number | 11 |
| DOIs | |
| State | Published - Dec 2010 |
Keywords
- Cournot oligopoly
- Dynamic game
- Nash equilibrium
- Robust stability
- Small gain
ASJC Scopus subject areas
- Modeling and Simulation
- Computational Theory and Mathematics
- Computational Mathematics