Huang, H., J. Whalley, S. Zhang——Applied Economics Letters: Multiple Nash Equilibria in Tariff Games
时间:2012-07-22
Unlike the case of competitive equilibria for which there is the index theorem, almost nothing is known about multiple equilibria in Nash games. Multiple Nash equilibria are hard to find computationally accounting for spare prior literature discussion. Existing numerical literature on tariff games either assumes uniqueness or uses restrictive functional forms that guarantees this is the case. Here, we show for pure exchange Constant Elasticity of Substitution (CES) two country models with tariff