Sensitivity analysis of boundary equilibria

Alan Beggs

Economic Theory, 2018, vol. 66, issue 3, No 8, 763-786

Abstract: Abstract This paper studies the sensitivity of economic equilibria to perturbations when the implicit function theorem cannot be applied on account of the presence of boundaries. It presents results from the mathematical programming literature which provide conditions under which equilibria are robust to perturbation and are locally unique Lipschitz continuous functions of parameters. Economic applications include search equilibrium, Cournot equilibrium and general equilibrium.

Keywords: Sensitivity analysis; Implicit function theorem; Equilibria; Variational inequalities; Boundaries (search for similar items in EconPapers)
JEL-codes: C61 C62 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Working Paper: Sensitivity Analysis of Boundary Equilibria (2015)
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DOI: 10.1007/s00199-016-0987-y

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