  Leveraging tools from the study of linear fractional transformations and
algebraic Riccati equations, a local characterization of consistent conjectural
variations equilibrium is given for two player games on continuous action
spaces with costs approximated by quadratic functions. A discrete time
dynamical system in the space of conjectures is derived, a solution method for
computing fixed points of these dynamics (equilibria) is given, local stability
properties of the dynamics around the equilibria are characterized, and
conditions are given that guarantee a unique stable equilibrium.
