Balasko, Yves; Royer, Daniel Stability of competitive equilibrium with respect to recursive and learning processes. (English) Zbl 0852.90037 J. Econ. Theory 68, No. 2, 319-348 (1996). Summary: We study the stability of competitive equilibria for recursive processes considered in the learning literature. We define \(h\)-stability (resp. \(F\)-stability, resp. \(\infty\)-stability) to mean stability for the least squares \(h\)-process (resp. \(h\)-stability for some finite \(h\), resp. with respect to the infinite least squares learning process). We show that \(h\)-stability implies \(h'\)-stability for \(h< h'\), with \(h'\) being either finite or infinite. \(F\)-stability implies \(\infty\)-stability, but is not equivalent to it. These results imply that equilibria featuring small income effects and equilibria where goods are gross substitutes are \(h\)-stable for any \(h\) since they are already known to be expectationally stable. Cited in 7 Documents MSC: 91B62 Economic growth models 91E40 Memory and learning in psychology Keywords:stability of competitive equilibria; recursive processes; learning process PDFBibTeX XMLCite \textit{Y. Balasko} and \textit{D. Royer}, J. Econ. Theory 68, No. 2, 319--348 (1996; Zbl 0852.90037) Full Text: DOI