Oligopoly with Hyperbolic Demand and Capital Accumulation

Lambertini, Luca (2009) Oligopoly with Hyperbolic Demand and Capital Accumulation. Bologna: Dipartimento di Scienze economiche DSE, p. 20. DOI 10.6092/unibo/amsacta/4573. In: Quaderni - Working Paper DSE (672). ISSN 2282-6483.
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Abstract

A dynamic approach is proposed for the analysis of the Cournot oligopoly game with hyperbolic demand, showing that the adoption of capital accumulation dynamics either `a la Solow-Swan or `a la Ramsey eliminate the indeterminacy problem characterising the static model when marginal costs are nil. It is proved that the steady state equilibria produced by both models are stable in the saddle point sense. Finally, it is also shown that the solutions of the corresponding feedback problems share analogous properties, although they cannot be fully characterised from an analytical standpoint.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca
Keywords
optimal control, differential games, Cournot competition, capacity
Subjects
ISSN
2282-6483
DOI
Deposit date
09 Feb 2016 12:28
Last modified
09 Feb 2016 12:28
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