Unique equilibrium

Updated: Aug 20, 2021

When an economic model or a game of strategy has a single equilibrium. This is an advantageous situation for an economic analyst since it eliminates debate about which equilibrium will emerge (a tricky question when there are multiple equilibria) and permits the application of comparative statics techniques. For many economic models the conditions required to ensure equilibrium is unique are restrictive.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.