Skip to main content

Correspondence Principles for Concave Orthogonal Games

Staff Report 90 | Published July 1, 1984

Download PDF

Author

Michael J. Stutzer Professor of Finance, University of Iowa

Correspondence Principles for Concave Orthogonal Games

Abstract

Silberberg [6] and Pauwels [2] have produced and clarified seminal results in the comparative statics of single-agent classical optimization problems. This paper extends Pauwels’ method to derive analogous results for stable Nath equilibria in a subclass of the widely used class of concave orthogonal games defined by Rosen [3]. Application of these results to cost curve shifts in the asymmetric Cournot oligopoly immediately uncovers apparently new comparative statics results.