Nash Equilibrium and Robust Stability in Dynamic Games: A Small-Gain Perspective
Dynamical Systems
2010-01-12 v1 Optimization and Control
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 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.
Keywords
Cite
@article{arxiv.1001.1438,
title = {Nash Equilibrium and Robust Stability in Dynamic Games: A Small-Gain Perspective},
author = {Iasson Karafyllis and Zhong-Ping Jiang and George Athanasiou},
journal= {arXiv preprint arXiv:1001.1438},
year = {2010}
}