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REPLICATOR DYNAMIC LEARNING IN MUTH'S MODEL OF PRICE MOVEMENTS

Published online by Cambridge University Press:  13 September 2012

Eran A. Guse  and
Joel Carton
Eran A. Guse*
Affiliation:
West Virginia University
Joel Carton
Affiliation:
Florida International University
*
Address correspondence to: Eran A. Guse, Department of Economics, College of Business and Economics, West Virginia University, Morgantown, WV 26506-6025, USA; e-mail: eran.guse@mail.wvu.edu.
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Abstract

We investigate the stability properties of Muth's model of price movements when agents choose a production level using replicator dynamic learning. It turns out that when there is a discrete set of possible production levels, possible stable states and stability conditions differ between adaptive learning and replicator dynamic learning.

Keywords

Asymptotic stabilityReplicator dynamicsCobweb modelE-stabilityNash equilibria

Information

Type
Articles
Information
Macroeconomic Dynamics , Volume 18 , Issue 3 , April 2014 , pp. 573 - 592
Copyright
Copyright © Cambridge University Press 2012 

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