A correspondence principle for cooperative differential equations

• 成果类型: Article
• 署名作者: Kwong, Kai-Sun
• 署名单位: Chinese University of Hong Kong
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2013.10.004
• 发表日期: 2014
• 页码: 878-887
• 关键词: Correspondence principle; monotone comparative statics; asymptotic stability; Differential equations

摘要

This paper establishes a correspondence principle in a system of cooperative differential equations. Equilibria that are locally asymptotically stable must exhibit monotone comparative statics. In a wider context, all equilibria that exhibit monotone comparative statics are locally asymptotically stable. The orbits of such systems are nondecreasing in the parameter and the adjustment dynamics after a parameter change are monotone and convergent to a unique limit. Our results can be applied to such models as adaptive play in games with strategic complementarities, stochastic fictitious play in supermodular games, and the Matsuyama [6] model of global financial market liberalization with multiple capital goods. (C) 2013 Elsevier Inc. All rights reserved.