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Gale–Nikaido–Debreu and Milgrom–Shannon: Communal interactions with endogenous community structures

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dc.contributor.author Musatov D.
dc.contributor.author Savvateev A.
dc.contributor.author Weber S.
dc.date.accessioned 2018-09-19T20:15:02Z
dc.date.available 2018-09-19T20:15:02Z
dc.date.issued 2016
dc.identifier.issn 0022-0531
dc.identifier.uri https://dspace.kpfu.ru/xmlui/handle/net/142737
dc.description.abstract © 2016 Elsevier Inc.This paper examines Nash jurisdictional stability in a model with a continuum of agents whose characteristics are distributed over a unidimensional interval. Communal benefits and costs of each individual depend on her identity and the composition of the community which she belongs to. Since the framework is too general to yield an existence of Nash equilibrium, we introduce the essentiality of membership in one of the communities for all individuals. We highlight the Border Indifference Property (BIP), when all individuals located on a border between two adjacent jurisdictions are indifferent about joining either of them and show that BIP is a necessary condition for yielding a Nash equilibrium. We invoke the celebrated Gale–Nikaido–Debreu Lemma to guarantee the existence of a partition that satisfies BIP. We then proceed to demonstrate that BIP is not sufficient to yield a Nash equilibrium. The equilibrium existence under BIP is rescued when we use the Milgrom–Shannon monotone comparative statics conditions.
dc.relation.ispartofseries Journal of Economic Theory
dc.subject Continuity
dc.subject Group formation
dc.subject Increasing differences
dc.subject Market interactions
dc.subject Monotonicity
dc.subject Nash stability
dc.title Gale–Nikaido–Debreu and Milgrom–Shannon: Communal interactions with endogenous community structures
dc.type Article
dc.relation.ispartofseries-volume 166
dc.collection Публикации сотрудников КФУ
dc.relation.startpage 282
dc.source.id SCOPUS00220531-2016-166-SID84988734834


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  • Публикации сотрудников КФУ Scopus [24551]
    Коллекция содержит публикации сотрудников Казанского федерального (до 2010 года Казанского государственного) университета, проиндексированные в БД Scopus, начиная с 1970г.

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