Neutral equilibrium


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Related to Neutral equilibrium: unstable equilibrium, stable equilibrium
(Mech.) the kind of equilibrium of a body so placed that when moved slighty it neither tends to return to its former position not depart more widely from it, as a perfect sphere or cylinder on a horizontal plane.

See also: Neutral

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Earlier work on FP auctions with known number of bidders indicated systematic overbidding compared to risk neutral equilibrium.
To understand and to analyze the stability of the entire human body it is important also to make a classification of equilibrium in: stable equilibrium occurs when an object is placed in such a position that any disturbance effort would raise its COM and tends to fall back in its original position; unstable equilibrium occurs when an object is placed in such a position that any disturbance effort would lower its COM and tends to fall into a more stable position; and neutral equilibrium occurs when an object is placed in such a position that any disturbance effort would not change the level of its COM and tends to fall into a more stable position.
In physics, according to a definition in the Penguin Dictionary of Physics, "a body is in stable, unstable, or neutral equilibrium according to whether the forces brought into play following a slight displacement tend to decrease, increase, or not affect the displacement, respectively.
The probability increments and the number of locations were chosen to guarantee the existence of the exact risk neutral equilibrium consistent with Shaked.