endógen

Endógen refers to a concept in economics and game theory that describes a situation where the variables of interest are determined within the model itself, rather than being given as exogenous inputs. In other words, endógenous variables are those whose values are influenced by the interactions and dynamics within the system being studied.

This concept is crucial in understanding how economic systems function and interact. For instance, in a general equilibrium model, prices, quantities, and other economic variables are endógenous because they are determined by the supply and demand forces within the model. This contrasts with exógenous variables, which are given as fixed inputs to the model.

Endógenous variables are often the primary focus of analysis in economic models because they reflect the internal workings of the system. By studying these variables, economists can gain insights into how changes in one part of the system affect other parts, and how the system as a whole responds to various stimuli.

The distinction between endógenous and exógenous variables is fundamental in economic theory and practice. It helps in identifying the sources of change and understanding the mechanisms through which economic phenomena occur. This distinction is particularly important in dynamic models, where the evolution of variables over time is of interest.