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Rationality in games and institutions

Synthese 199 (5-6):12295-12314 (2021)

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  1. Nash meets Samuelson: the comparative-statics interpretation of Nash equilibrium.Marek Hudik - 2022 - Journal of Economic Methodology 30 (2):122-134.
    This paper suggests that Nash equilibrium can be interpreted as a conceptual tool for addressing comparative-statics issues on an aggregate level. Together with additional assumptions, Nash equilibrium helps generate testable predictions about changes or differences of behavior induced by changes or differences of exogenous variables. However, Nash-equilibrium behavior, as such, is not subject to empirical testing. Instead, widespread and persistent behavior is modeled as a Nash equilibrium by assumption. The paper argues that this interpretation is in line with the traditional (...)
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