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condition, called "global stability under uncertainty," implies a variety of results to the effect that the impact of higher …-order uncertainty is small. Our central result states that, under global stability, the maximum change in equilibrium strategies due to …
Persistent link: https://www.econbiz.de/10005129808
epistemic foundations behind the fascinating idea of stability due to J. von Neumann and O. Morgenstern. The major features of …
Persistent link: https://www.econbiz.de/10005130251
In this paper, we consider a dynamic New Keynesian model of the small open economy in the light of bounded rationality. This entails private agents and the central bank updating their beliefs about the laws of motion of inflation, the output gap and real exchange rate when forming their optimal...
Persistent link: https://www.econbiz.de/10005702553
and achieve implementation of efficient allocation by iterative elimination of weakly dominated strategies, using a …
Persistent link: https://www.econbiz.de/10005063719
implementation with incomplete information has often left out the consideration of mixed-strategy equilibria. This is particularly … necessary and sufficient conditions for full implementation of social choice sets in mixed-strategy Bayesian equilibrium. We … refer to this as mixed implementation. Our results characterize both exact and virtual mixed implementation. For exact …
Persistent link: https://www.econbiz.de/10005702677