Dr. Bill Smith published in Journal of Mathematical Economics
For release: April 2, 2015
Dr. Bill Smith, department chair of Economics, had his paper entitled “Changes in Risk in Strategic Interaction” published in the Journal of Mathematical Economics. His paper was coauthored with Diego Nocetti, a former FCBE doctorate student who is now at Clarkson University.
This paper focused on comparing the statics of random dominance shifts in a large class of non-cooperative games. It considered symmetric and asymmetric equilibria in which the risk changes are individual and not of the same stochastic order. The paper also established conditions for risk changes to produce multiplier effects on equilibrium strategies. It also evaluated the comparative statics of stochastic dominance shifts in supermodular games which may feature multiple equilibria and non-convex strategy sets.