Nash equilibrium and robust stability in dynamic games: A small-gain perspective

Iasson Karafyllis, Zhong-Ping Jiang, George Athanasiou

Research output: Contribution to journalArticle

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 languageEnglish (US)
Pages (from-to)2936-2952
Number of pages17
JournalComputers and Mathematics with Applications
Volume60
Issue number11
DOIs
StatePublished - Dec 2010

Fingerprint

Dynamic Games
Difference equations
Robust Stability
Asymptotic stability
Control theory
Equilibrium Point
Nash Equilibrium
Functional Difference Equation
Specifications
Oligopoly
Economics
Methodology
Economic Model
Global Asymptotic Stability
Control Theory
Uniqueness
Game
Specification
Demonstrate
Robust stability

Keywords

  • Cournot oligopoly
  • Dynamic game
  • Nash equilibrium
  • Robust stability
  • Small gain

ASJC Scopus subject areas

  • Computational Theory and Mathematics
  • Modeling and Simulation
  • Computational Mathematics

Cite this

Nash equilibrium and robust stability in dynamic games : A small-gain perspective. / Karafyllis, Iasson; Jiang, Zhong-Ping; Athanasiou, George.

In: Computers and Mathematics with Applications, Vol. 60, No. 11, 12.2010, p. 2936-2952.

Research output: Contribution to journalArticle

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