An economic game with stochastic dynamics
نویسندگان
چکیده
In this paper we investigate a stochastic model for an economic game. To describe this model we have used a Wiener process, as the noise has a stabilization effect. The dynamics are studied in terms of stochastic stability in the stationary state, by constructing the Lyapunov exponent, depending on the parameters that describe the model. The numerical simulation that we did justifies the theoretical results. Mathematics Subject Classification: 34D08, 60H10, 91B70
منابع مشابه
Dynamics of Housing Prices and Economic Fluctuations in Iran with the Approach of Dynamic Stochastic General Equilibrium (DSGE)
This paper studies the relationship between housing prices and business cycles in Iran. Since housing has a dual nature, that is, both private and capital nature, it can play an important role in investment costs and economic growth and incite other manufacturing sectors in the country. In this paper, housing prices and business cycles have been used to measure housing as a collateral, which is...
متن کاملMonetary and Fiscal Policy Interaction in Iran: A Dynamic Stochastic General Equilibrium Approach
Achieving the goals of price stability, sustainable economic growth, and the improvement of many economic variables require coordination between the monetary and financial authorities. In this study, a new modified Keynesian stochastic dynamic equilibrium general equilibrium model is introduced for Iran and in the framework of game theory, optimal policy of fiscal and monetary authorities are d...
متن کاملDeterministic approximation of best-response dynamics for the Matching Pennies game
We consider stochastic dynamics for the Matching Pennies game, which behave, in expectation, like the best-response dynamics (i.e., the continuous fictitious play). Since the corresponding vector field is not continuous, we cannot apply the deterministic approximation results of Benäım and Weibull [2003]. Nevertheless, we prove such results for our dynamics by developing the notion of a “leadin...
متن کاملAgricultural Economic Dynamics in a Bayesian DSGE Model for Iran
I ran’s economy is suffering from sharp and persistent economic shocks and agriculture plays an undeniable role in its economic growth and development. The aim of this paper is to study the relative contributions of various macroeconomic shocks to generating fluctuations in Iran’s agriculture sector. To do so, a Dynamic Stochastic General Equilibrium (DSGE) model, emphasizing on the ...
متن کاملThe analysis of the stochastic stability for an economic game
In this paper we investigate a stochastic model for an economic game. To describe this model we have used a Wiener process, as the noise has a stabilization effect. The dynamics are studied in terms of stochastic stability in the stationary state, by constructing the Lyapunov exponent, depending on the parameters that describe the model. Also, the Lyapunov function is determined in order to ana...
متن کامل