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7 votes

Differential equation for first-price auction

For notational simplicity, let me define the distribution $G(s) = F^{N-1}(s)$ with density $g(s)$. Let $\underline{s} = 0$ (for simplicity). We have $$ b'(s)G(s)+b(s)g(s)=s g(s) $$ Integrating to $x$ ...
Walrasian Auctioneer's user avatar
2 votes

Dynamic Market Equilibrium: motivation for differential equations

As the link you provided mentions: "Differential equations can be used to include the dynamic aspects to economics into a mathematical framework which takes into account the volatility present ...
Alecos Papadopoulos's user avatar
1 vote

Game theory and differential equations

This is probably an old question. However there is a book on PDE's and game theory. Game Theory and Partial Differential Equations, Pablo Blanc and Julio Daniel Rossi. If you found other books on this ...
Ramesh Kadambi's user avatar
1 vote

In economic modelling, how are we sure the linearized equilibria behave similarly to original equilibria?

Many macroeconomists have a somewhat cavalier attitude towards checking the validity of linearization methods, but definitely not all of them. For an example of the approximation issues being taken ...
Michael Greinecker's user avatar

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