Static stability in strategic games differs from dynamic stability in only considering the players' incentives to change their strategies. It does not rely on any assumptions about the players' reactions to these incentives and it is thus not linked with any particular dynamics. This paper...

The impact of information technology (IT) on the stability of market equilibrium is explained from a simple microeconomic standpoint. Attributes of a dynamically stable “virtual” market equilibrium are described assuming consumer rationality, an elastic supply curve, and minimum static...

A coordination game with incomplete information is played through time. In each period, payoffs depend on a fundamental state and an additional idiosyncratic shock. Fundamentals evolve according to a random walk where the changes in fundamentals (namely common shocks) have a fat tailed...