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As we might expect, models with social norms easily give rise to multiple equilibria, one with low and one with high welfare-state spending.
Surely, these macroscopic equilibria are ultimately the result of the complicated dynamics of the underlying system of particles including collisions and dissipation.
The authors propose a simple model with linear random technologies and look at the competitive equilibria as the number of commodities and techniques increases.
Pareto-ranked multiple equilibria exist with the extent of the market and circulation of private liabilities endogenously determined.
The logical quantity theory is about the relationship among sets of competitive equilibria.
Note that competitive equilibria also exist in my economy, at nominal prices high enough.
We study monetary equilibria with and without binding reserve requirements.
We confine ourselves to studying monetary equilibria in which a reserve requirement is binding at each date.
In the equilibria that we describe, the players' ability to threaten each other credibly does not help them narrow their differences.
He finds that a multitude of equilibria are possible.
Of particular interest is that ministerial restraint equilibria generally require a certain degree of difference in the ministers' levels of ambition.
Additionally, as our proof shows (see end of article), as the magnitude of affinities increases, alternative equilibria disappear.
In a game theory model, the outcome of the model can be represented as a set of mathematically specified equilibria.
The conditions for ministerial restraint equilibria are somewhat more restrictive than when the reshuffle regime is exogenously determined, but not overly so.
In fact, for vanishing gravitational field, these equilibria have no well-defined limit.
