학술저널
On the Stability of Heller's Coordination Failure Model
- 서울대학교 경제연구소
- Seoul Journal of Economics
- Seoul Journal of Economics Volume 21 No.3
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2008.091 - 1 (0 pages)
- 2
This paper reconsiders Heller's multisector Cournot-Nash model (Heller 1986) hat is known as one of the representative models of coordination failure. In Heller's model, there are multiple Pareto-anked equilibria if the price elasticity of demand is highly inelastic near the subsistence level. This paper analyzes the stability of those equilibria and shows that the inferior equilibrium is unstable while the superior equilibrium is stable. Therefore, the coordination failure does not emerge in Heller's model.
Abstract
Ⅰ. Introduction
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