Extended Model on Structural Stability and Robustness to Bounded Rationality

Abstract

In this article, we focus on an extended model $\overline{M}$ of bounded rationality. Based on a rationality function with lower semicontinuity, we analyze the relationship between structural stability and robustness of $\overline{\mathrm{\Omega }}$ . To further demonstrate the applicability of our theory, we introduce a model ${\overline{\mathrm{\Omega }}}_0$ containing an abstract rationality function and generalize abstract fuzzy economies. We demonstrate the structural stability of the extended model ${\overline{\mathrm{\Omega }}}_0$ at $\left(\overline{\xi },\varepsilon \right)$ . That is to say, ${\overline{\mathrm{\Omega }}}_0$ is robust to the $\left(\overline{\xi },\varepsilon \right)$ -equilibria.