Lambertini, Luca ; Mantovani, Andrea
(2016)
On the (in)stability of nonlinear feedback solutions in a dynamic duopoly with renewable resource exploitation.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 11.
DOI 10.6092/unibo/amsacta/4576.
In: Quaderni - Working Paper DSE
(1053).
ISSN 2282-6483.
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Abstract
We revisit Fujiwaraís (2008) differential duopoly game to show that the degenerate nonlinear feedback identified by the tangency point with the stationary state line is indeed unstable, given the dynamics of the natural resource exploited by firms. To do so, we fully characterise the continuum of nonlinear feedback solution via Rowat's (2007)method, characterising the infinitely many stable nonlinear feedback equilibria.
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