Runs, panics and bubbles: Diamond–Dybvig and Morris–Shin reconsidered

Eric Smith and Martin Shubik

Annals of Finance, 2014, vol. 10, issue 4, 603-622

Abstract: The basic two-noncooperative-equilibrium-point model of Diamond and Dybvig is considered along with the work of Morris and Shin utilizing the possibility of outside noise to select a unique equilibrium point. Both of these approaches are essentially nondynamic. We add an explicit replicator dynamic from evolutionary game theory to provide for a sensitivity analysis that encompasses both models and contains the results of both depending on parameter settings. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Multiple equilibria; Runs; Replicator dynamics; Sensitivity analysis; C73; D84; E59 (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: Runs, Panics and Bubbles: Diamond Dybvig and Morris Shin Reconsidered (2012)
Working Paper: Runs, Panics and Bubbles: Diamond-Dybvig and Morris-Shin Reconsidered (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:annfin:v:10:y:2014:i:4:p:603-622

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DOI: 10.1007/s10436-013-0231-8

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