Stability analysis for profit-responsive selection mechanisms

DOI10.1016/0165-4896(86)90035-1MaRDI QIDQ1083006zbMATH OpenOpenAlexFDO

Authors Gregory K. Dow

Publication date 1986

Published in Mathematical Social Sciences (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/0165-4896(86)90035-1

zbMATH Keywords

dynamic model of competition among techniquesprofit-responsive selection mechanismstability analysis

Mathematics Subject Classification ID

Production theory, theory of the firm (91B38)

Review text

Industrial organization economists commonly regard realized profit as a test of the viability of production techniques. The concept of a profit- responsive selection mechanism is defined for a dynamic model of competition among techniques. For a class of symmetric economic environments, an auxiliary function is presented whose maxima correspond to the stable equilibria of the original dynamic system. Given knowledge of the relevant technology, and exogenous supply and demand conditions, stability analysis can be carried out using this auxiliary function, without imposing any additional restrictions on the selection mechanism beyond the weak property of profit-responsiveness.

Recommendations

• The notion of the rate of profit and the stability of the market dynamics in a model with linear technology
• Local stability of smooth selection dynamics for normal form games
• Some notes on the stability of a simple Cournot economy with a Leontief technology
• Optimality and natural selection in markets
• scientific article; zbMATH DE number 89444

Cites work

• scientific article; zbMATH DE number 3484411 (Why is no real title available?)
• scientific article; zbMATH DE number 3487161 (Why is no real title available?)
• Quadratic Diameter of a Metric Space and its Application to a Problem in Analysis
• The Stability of Dynamic Processes

Cited in

(2)

• Stability analysis of the partial selfing selection model
• The notion of the rate of profit and the stability of the market dynamics in a model with linear technology

This page was built for publication: Stability analysis for profit-responsive selection mechanisms

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q1083006)