Lorenz Equilibrium: Concept and Evolutionary Detection

Author(s):  
Reka Nagy ◽  
D. Dumitrescu ◽  
Rodica Ioana Lung
Keyword(s):  
2021 ◽  
Author(s):  
Michael Richter ◽  
Ariel Rubinstein

Abstract Each member of a group chooses a position and has preferences regarding his chosen position. The group’s harmony depends on the profile of chosen positions meeting a specific condition. We analyse a solution concept (Richter and Rubinstein, 2020) based on a permissible set of individual positions, which plays a role analogous to that of prices in competitive equilibrium. Given the permissible set, members choose their most preferred position. The set is tightened if the chosen positions are inharmonious and relaxed if the restrictions are unnecessary. This new equilibrium concept yields more attractive outcomes than does Nash equilibrium in the corresponding game.


2014 ◽  
Vol 19 (12) ◽  
pp. 04014034 ◽  
Author(s):  
Noriaki Ohara ◽  
SuHyung Jang ◽  
Shuichi Kure ◽  
Z. Q. Richard Chen ◽  
M. Levent Kavvas

2014 ◽  
Vol 108 (2) ◽  
pp. 281-296 ◽  
Author(s):  
SEOK-JU CHO

This article studies the consequences of strategic voting by outcome-oriented voters in elections under proportional representation (PR). I develop a model of elections under PR, in which voters choose among an arbitrary finite number of parties, and the policy outcome is determined in a postelection bargaining stage. I use a new solution concept, robust equilibrium, which greatly mitigates the well-known problem of indeterminate predictions in multicandidate competition. Applying the equilibrium concept to the model, I find that PR promotes representation of small parties in general, even when voters are strategic. However, the median voter plays a critical role in shaping policy outcomes, which reflects the majoritarian nature of parliamentary policy making rules. Thus, PR may not be incompatible with the majoritarian vision of representative democracy if voters’ main concern is policy outcomes.


2014 ◽  
Vol 6 (1) ◽  
pp. 71-88
Author(s):  
Tamás László Balogh ◽  
János Kormos

Abstract Several behavioral game theory models aim at explaining why “smarter“ people win more frequently in simultaneous zero-sum games, a phanomenon, which is not explained by the Nash equilibrium concept. We use a computational model and a numerical simulation based on Markov chains to describe player behavior and predict payoffs.


2005 ◽  
Vol 50 (165) ◽  
pp. 121-144
Author(s):  
Bozo Stojanovic

Market processes can be analyzed by means of dynamic games. In a number of dynamic games multiple Nash equilibria appear. These equilibria often involve no credible threats the implementation of which is not in the interests of the players making them. The concept of sub game perfect equilibrium rules out these situations by stating that a reasonable solution to a game cannot involve players believing and acting upon noncredible threats or promises. A simple way of finding the sub game perfect Nash equilibrium of a dynamic game is by using the principle of backward induction. To explain how this equilibrium concept is applied, we analyze the dynamic entry games.


Author(s):  
Giovanni Zocchi

This chapter provides an introduction to the main ideas of Brownian motion. Brownian motion connects equilibrium and nonequilibrium statistical mechanics. It connects diffusion—a nonequilibrium phenomenon—with thermal fluctuations—an equilibrium concept. More precisely, diffusion with a net flow of particles, driven by a concentration gradient, pertains to a nonequilibrium system, since there is a net current. Without a concentration gradient, the system is macroscopically in equilibrium, but each individual particle undergoes self-diffusion just the same. In this sense, Brownian motion is at the border of equilibrium and nonequilibrium statistical mechanics.


Author(s):  
Tomas Björk

This is the first of several chapters dealing with the dynamic equilibrium theory. As an instructive first example we study a simple Cox–Ingersoll–Ross type of production model. The equilibrium concept is given a precise formulation and we derive the equilibrium short rate as well as the equilibrium stochastic discount factor. We also study the associated optimization problem for a central planner and prove that this is equivalent to the equilibrium problem.


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