Working Paper
Convexity, Differential Equations, and Games
Sjur Didrik Flåm
CESifo, Munich, 2002
CESifo Working Paper No. 655
CESifo, Munich, 2002
CESifo Working Paper No. 655
Theoretical and experimental studies of noncooperative games increasingly recognize Nash equilibrium as a limiting outcome of players‘ repeated interaction. This note, while sharing that view, illustrates and advocates combined use of convex optimization and differential equations, the purpose being to render equilibrium both plausible and stable.
Keywords: noncooperative games, Nash equilibrium, repeated play, differential equations, stability.