A note on local uniqueness of equilibria: How isolated is a local equilibrium?

Abstract

The motivation of this note is to show how singular values affect local uniqueness. More precisely, Theorem 3.1 shows how to construct a neighborhood (a ball) of a regular equilibrium whose diameter represents an estimate of local uniqueness, hence providing a measure of how isolated a (local) unique equilibrium can be. The result, whose relevance in terms of comparative statics is evident, is based on reasonable and natural assumptions and hence is applicable in many different settings, ranging from pure exchange economies to non-cooperative games.