Extended Model on Structural Stability and Robustness to Bounded Rationality

Complexity 2021:1-6 (2021)
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Abstract

In this article, we focus on an extended model M ¯ of bounded rationality. Based on a rationality function with lower semicontinuity, we analyze the relationship between structural stability and robustness of Ω ¯. To further demonstrate the applicability of our theory, we introduce a model Ω ¯ 0 containing an abstract rationality function and generalize abstract fuzzy economies. We demonstrate the structural stability of the extended model Ω ¯ 0 at ξ ¯, ɛ. That is to say, Ω ¯ 0 is robust to the ξ ¯, ɛ -equilibria.

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