Evaluating Approximate Equilibria of Dynamic Economic Models

On the existence of approximate equilibria and sharing rule solutions in discontinuous games

This paper studies the existence of equilibrium solution concepts in a large class of economic models with discontinuous payoff functions. The issue is well understood for Nash equilibria, thanks to Reny’s betterreply security condition (Reny (1999)), and its recent improvements (Barelli and Meneghel (2013); McLennan et al. (2011); Reny (2009, 2011)). We propose new approaches, related to Reny’...

Approximate Versus Exact Equilibria∗

This paper develops theoretical foundations for an error analysis of approximate equilibria in dynamic stochastic general equilibrium models with heterogeneous agents and incomplete financial markets. While there are several algorithms which compute prices and allocations for which agents’ first order conditions are approximately satisfied (‘approximate equilibria’), there are few results on ho...

A Comparative Approximate Economic Behavior Analysis Of Support Vector Machines And Neural Networks Models

Convergence of best-response dynamics in extensive-form games

We prove that, in all finite generic extensive-form games of perfect information, a continuous-time best response dynamic always converges to a Nash equilibrium component. We show the robustness of convergence by an approximate best response dynamic: whatever the initial state and an allowed approximate best response dynamic, the state is close to the set of Nash equilibria most of the time. In...

The accuracy of numerical solutions for dynamic GEI models ∗

This paper develops theoretical foundations for the computation of competitive equilibria in dynamic stochastic general equilibrium models with heterogeneous agents and incomplete financial markets. While there are several algorithms which compute prices and allocations for which agents’ first order conditions are approximately satisfied (‘approximate equilibria’), there are few results on how ...