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Structurally stable Nash equilibria in pure strategies for a model of monopolistic competition
- Article from:
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Seoul Journal of Economics
- Article date:
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January 1, 2001
- Author:
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Copyright informationCopyright Institute of Economic Research Winter 2001. Provided by ProQuest LLC. (Hide copyright information)
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A model of monopolistically competitive industry is formulated using the theory of large games. We show that an equilibrium exists for the game and that equilibrium correspondence is upper hemi-continuous. The model's implications are discussed, especially on existence and characteristics of structurally stable equilibria and on the relationship to Kumar and Satterthwaite's (1985) model.
Keywords: Large games, Monopolistic competition, Continuity, Stability
I. Introduction
Game theory is now widely employed in various fields of economics. The most commonly used form of games is a finite-- player non-cooperative game, for which Nash (1950) provided the celebrated solution concept of an ...
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