Logit Dynamic for Continuous Strategy Games: Existence of Solutions.∗
نویسنده
چکیده
We define the logit dynamic in the space of probability measures for a game with a compact and continuous strategy set. The original Burdett and Judd (1983) model of price dispersion comes under this framework. We then show that if the payoff functions of the game satisfy Lipschitz continuity under the strong topology in the space of signed measures, the logit dynamic admits a unique solution in the space of probability measures. As a corollary, we obtain that logit dynamic generated by the original Burdett and Judd model is well defined.
منابع مشابه
The Continuous Logit Dynamic and Price Dispersion
We define the logit dynamic for games with continuous strategy spaces and establish its fundamental properties , i.e. the existence, uniqueness and continuity of solutions. We apply the dynamic to the analysis of the Burdett and Judd (1983) model of price dispersion. Our objective is to assess the stability of the logit equilibrium corresponding to the unique Nash equilibrium of this model. Alt...
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