No. 96 - Macroeconomic Policy Coordination of Interdependent Economies

the Game-Theory Approach in a Static Framework Summary

by Juan Carlos Martinez Oliva
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The present paper aims at setting out the basic elements of the game-theory approach in a static framework. For this purpose a "beggar-thy-neighbour" world, corresponding to the case of symmetric-negative spillover, is compared with a "locomotive" world, corresponding to the case of symmetric-positive spillover. In both cases the utility outcomes from Cournot-Nash, Pareto and Stackelberg regimes are analyzed. A fixed exchange rate regime, modelled as a non-cooperative game, is also considered. The conclusions develop a number of considerations that underscore the need for some empirical implementation of the game-theory approach.

Full text

  1. 31 October 1987
    No. 96 - Macroeconomic Policy Coordination of Interdependent Economies: the Game-Theory Approach in a Static Framework
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