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Adjustment Processes for Exchange Economies and Noncooperative Games

  • Antoon van den Elzen

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 402)

Table of contents

  1. Front Matter
    Pages i-vii
  2. Antoon van den Elzen
    Pages 1-12
  3. Antoon van den Elzen
    Pages 13-32
  4. Antoon van den Elzen
    Pages 33-52
  5. Antoon van den Elzen
    Pages 97-139
  6. Back Matter
    Pages 141-152

About this book

Introduction

This monograph is a treatise on adjustment processes. We consider price adjustment processes in exchange economies and strategy adjustment processes in noncooperative games. In the most simple version of an exchange economy, i.e. a pure exchange economy, there exist markets on which prices are determined by the demand and supply created by a finite number of consumers willing to exchange their initial endowments in order to maximize their utilities. An equilibrium situation is attained if, for some price vector, demand equals supply in all markets. Starting from a situation not being an equi­ librium an adjustment process reaches an equilibrium via adaptations of prices. The advantage of the adjustment processes we will present in this monograph is that they exist and converge under far weaker assumptions than existing processes. The second subject concerns the problem of finding Nash equilibria in noncooperative games. A Nash equilibrium is a situation from which no player can improve his position by unilaterally changing his strategy. We present a new algorithm for finding such equilibria. The sequence of stra­ tegy vectors generated by the algorithm can be interpreted as the path followed by a strategy adjustment process.

Keywords

Anpassungsprozeß Bi-Matrix Spiel Bi-Matrix game Exchange Economies Nash equilibrium Nash-Gleichgewicht Noncooperative Games Tauschwirtschaft adjustment process exchange economy game theory production

Authors and affiliations

  • Antoon van den Elzen
    • 1
  1. 1.Department of EconometricsTilburg UniversityTilburgThe Netherlands

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-48133-8
  • Copyright Information Springer-Verlag Berlin Heidelberg 1993
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-57310-4
  • Online ISBN 978-3-642-48133-8
  • Series Print ISSN 0075-8442
  • Buy this book on publisher's site