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However, with genuine uncertainty in the endowments and with convex marginal utilities, no interior equilibrium can exist.
The second treatment has an interior equilibrium, asymmetric marginal costs of reciprocity (positive and negative) and lower efficiency gains.
Based on the suggested interaction rates, it is proved that the system doesn't have any undesirable interior equilibrium point as well.
Therefore, the interior equilibrium (E^) of system (2) is stable.
The coexistence equilibrium (interior equilibrium) (E^=(P^,Z^)).
This matter is solved in Theorem 3.3, which gives possible conditions for the existence of interior equilibrium and describes criteria for the stability of interior equilibrium.
In the case of an interior equilibrium we have (tilde {theta }<1).
If there exist two equilibria, then they must include an axis equilibrium and an interior equilibrium.
end{aligned} (3.30) Thus, the unique interior equilibrium (E(x^_{1},x^_{2})) is globally attractive.
When (H2 - H4) hold, the interior equilibrium is globally asymptotically stable.
Hence, the interior equilibrium (P_{3}) remains stable for (tau < 0.7234).
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