TY  - GEN
AB  - We define the logit dynamic for games with continuous strategy spaces and establish its
fundamental properties , i.e. the existence, uniqueness and continuity of solutions. We apply the
dynamic to the analysis of the Burdett and Judd (1983) model of price dispersion. Our objective
is to assess the stability of the logit equilibrium corresponding to the unique Nash equilibrium of
this model. Although a direct analysis of local stability is difficult due to technical difficulties,
an appeal to finite approximation techniques suggest that the logit equilibrium is unstable.
Price dispersion, instead of being an equilibrium phenomenon, is a cyclical phenomenon. We
also establish a result on the Lyapunov stability of logit equilibria in negative definite games.
DA  - 2014
KW  - Price dispersion
KW  - Evolutionary game theory
KW  - Logit dynamic
LA  - eng
PY  - 2014
SN  - 0931-6558
SP  - 34-
TI  - The Continuous Logit Dynamic and Price Dispersion
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29016458
Y2  - 2024-11-22T04:28:55
ER  -