Abstract:
Dynamic rent-seeking games with nonlinear cost functions are analyzed. The local
asymptotic stability of the solution is first examined. We show that in tbe absence of a dominant
agent, all eigenvalues of the Jacobian are real. Conditions are given for the local asymptotic stability
as well as for the local instability of the equilibrium.In the presence of a dominant agent, complex
eigenvalues are possible. Simple stability conditions are presented for cases when all eigenvalues
are real, and the possibility of limit cycles is analyzed in the case of complex eigenvalues.
