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- W2781036269 abstract "In this paper, we study a perfect foresight dynamics in the Core-Periphery(CP) model with taste heterogeneity of agents, that has multiple equilibria. We introduce stochastic fluctuations into the model and describe the state of the model by a Markov process. By solving the master equation and the value function, we show that equilibrium agglomeration patterns can be obtained as probability distributions around the stationary states of the mean dynamics and that this provides a basis for equilibrium selection in CP models." @default.
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- W2781036269 date "2010-01-01" @default.
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- W2781036269 title "Stochastic Dynamics and Equilibrium Selection in Core-Periphery Model" @default.
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- W2781036269 doi "https://doi.org/10.2208/journalip.27.121" @default.
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