Structural Stability Implies Robustness to Bounded Rationality

Increasing complexity in structurally stable models: An application to a pure exchange economy

“…The spaces Λ and X represent the parameter and actions spaces, respectively. The correspondence F : Λ × X ⇒ X defines the feasible actions set and the rationality function R : spaces Λ and X and the mappings involved, Anderlini and Canning (2001) show that a model M is structurally stable if and only if it is robust to bounded rationality. Yu et al (2009) extend Anderlini and Canning's (2001) results by relaxing the assumptions of compactness proving that a model M is almost everywhere structurally stable and that structural stability implies robustness.…”

“…Following Anderlini and Canning (2001) and Yu et al (2009) (see also Section 2), a model M is defined as a quadruple M = {Λ, X , F , R}. The spaces Λ and X represent the parameter and actions spaces, respectively.…”

“…A model M is defined (see Anderlini and Canning (2001) and Yu et al (2009)) as a quadruple M = {Λ, X , F , R}, where Λ and X represent the parameter and actions spaces, respectively, F is a correspondence defining the feasible actions and R is a real-valued function which measures the degree of rationality of the feasible actions. We recall that structural stability means the continuity of the equilibrium set with respect to small perturbations of the parameters and that robustness to bounded rationality holds if small deviations from rationality imply small changes in the equilibrium set.…”

Well-posedness for a class of strong vector equilibrium problems

“…By using a scalarization method, Li et al [18] introduced two types of Levitin-Polyak well-posedness for (VEP) with variable domination structures and gave sufficient conditions and metric characterizations of Levitin-Polyak well-posedness for (VEP). Using the bounded rationality model (see, [2,29,30]), Deng and Xiang [6] introduced and studied wellposedness in connection with generalized vector equilibrium problems, which unifies its Hadamard and Levitin-Polyak well-posedness. Zhang et al [33] extended the result of [6] to symmetric vector qusiequilibrium problems.…”

How Do Behavioral Assumptions Affect Structural Inference? Evidence From a Laboratory Experiment

“…This has led theorists, particularly over the last 10 years, to begin to assess the equilibrium implications of certain types of rule-of-thumb behavior (see, e.g., Ellison and Fudenberg 1993, Krusell and Smith, 1995, Lettau and Uhlig, 1999, or Anderlini and Canning, 2000.…”