Book Details

Economic Dynamics and Information

Publication year: 2006

: 978-3-540-32695-3


This book analyzes the existence of equilibria in economies having a measured space of agents and a continuum of agents and commodities. Excessive homogeneity with respect to agent productivity leads to instability and non-uniqueness of a given stationary state and the indeterminacy of the corresponding stationary state equilibrium. Sufficient heterogeneity leads to global saddle-path stability, uniqueness of a given stationary state and the global uniqueness of the corresponding equilibrium.

: Business and Economics, Chaos, Dynamics, Equilibrium, Incomplete Information, Risk, agents, uncertainty