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Equilibrium Selection in Games with Macroeconomic Complementarities

Author

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  • Kaarboe, O.M.
  • Tieman, A.F.
Abstract
We apply the stochastic evolutionary approach of equilibrium selection to macroeconomic models in which a complementarity at the macro level is present. These models often exhibit multile Pareto-ranked Nash equilibria , and the best response-correspondence of an individual increases with a measure of the aggregate state of the economy.

Suggested Citation

  • Kaarboe, O.M. & Tieman, A.F., 2000. "Equilibrium Selection in Games with Macroeconomic Complementarities," Norway; Department of Economics, University of Bergen 2199, Department of Economics, University of Bergen.
    • Handle: RePEc:fth:bereco:2199
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    References listed on IDEAS

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    1. Jacques Durieu & Hans Haller & Philippe Solal, 2011. "Nonspecific Networking," Games, MDPI, vol. 2(1), pages 1-27, February.
    2. Philippe Solal & Jacques Durieu, 2005. "Interaction on Hypergraphs," Post-Print hal-00375568, HAL.

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    More about this item

    Keywords

    GAME THEORY ; MACROECONOMICS ; MATHEMATICAL ANALYSIS;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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