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Stability, strategic substitutes, strategic complements

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  • Jeroen Hinloopen

Abstract

The Routh–Hurwitz stability condition is disentangled for choice variables that are strategic substitutes or strategic complements. This yields distinct stability conditions that are not necessarily symmetric. Two examples illustrate this result. Copyright Springer-Verlag Wien 2015

Suggested Citation

  • Jeroen Hinloopen, 2015. "Stability, strategic substitutes, strategic complements," Journal of Economics, Springer, vol. 116(2), pages 129-135, October.
    • Handle: RePEc:kap:jeczfn:v:116:y:2015:i:2:p:129-135
    DOI: 10.1007/s00712-014-0422-4
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    References listed on IDEAS

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    1. Qiu, Larry D., 1997. "On the Dynamic Efficiency of Bertrand and Cournot Equilibria," Journal of Economic Theory, Elsevier, vol. 75(1), pages 213-229, July.
    2. Jeroen Hinloopen, 2003. "R&D Efficiency Gains Due to Cooperation," Journal of Economics, Springer, vol. 80(2), pages 107-125, October.
    3. Seade, Jesus K, 1980. "On the Effects of Entry," Econometrica, Econometric Society, vol. 48(2), pages 479-489, March.
    4. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
    5. De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
    6. Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February.
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    Cited by:

    1. Yasunori Ishii, 2017. "International asymmetric R&D rivalry and industrial strategy," Journal of Economics, Springer, vol. 122(3), pages 267-278, November.
    2. Marie‐Laure Cabon‐Dhersin & Romain Gibert, 2020. "R&D cooperation, proximity and distribution of public funding between public and private research sectors," Manchester School, University of Manchester, vol. 88(6), pages 773-800, December.
    3. Buccella, Domenico & Fanti, Luciano & Gori, Luca, 2023. "Optimal R&D disclosure in network industries," Economic Systems, Elsevier, vol. 47(4).
    4. Amagoia Sagasta, 2019. "Cooperative R&D with durable goods," Journal of Economics, Springer, vol. 128(3), pages 239-258, December.

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    More about this item

    Keywords

    Strategic substitutes; Strategic complements; Stability conditions; C62;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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