Stability of Equilibria with Externalities

S-Tier
Journal: Quarterly Journal of Economics
Year: 1988
Volume: 103
Issue: 2
Pages: 261-277

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

It is shown that, in a class of models with multiple externalities (one positive and one negative), all stationary equilibria may be locally stable to perturbations, in the sense that there exist perfect foresight trajectories leading back to the equilibrium. Thus, scale diseconomies (arising, for example, out of a common resource pool) generally overturn the Liviatan-Samuelson result, that equilibria are either saddlepoints or sources.

Technical Details

RePEc Handle
repec:oup:qjecon:v:103:y:1988:i:2:p:261-277.
Journal Field
General
Author Count
2
Added to Database
2026-01-26