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A differential oligopoly game with differentiated goods and sticky prices

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  • Cellini, Roberto
  • Lambertini, Luca

Abstract

We investigate a dynamic oligopoly game where goods are differentiated and prices are sticky. We study the open-loop Nash equilibrium, and show that the latter equilibrium entails a larger level of steady state production as compared to the former; both equilibria entail a larger level of production in steady state than in static game. We also study the effects of price stickiness and product differentiation upon the steady state equilibrium allocation. We find that per-firm equilibrium output is increasing in both product differentiation and price stickmess.
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  • Cellini, Roberto & Lambertini, Luca, 2007. "A differential oligopoly game with differentiated goods and sticky prices," European Journal of Operational Research, Elsevier, vol. 176(2), pages 1131-1144, January.
  • Handle: RePEc:eee:ejores:v:176:y:2007:i:2:p:1131-1144
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    10. R. Cellini & L. Lambertini, 2000. "Dynamic Oligopoly with Sticky Prices: Closed-Loop,Feedback and Open-Loop Solutions," Working Papers 393, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Dockner, Engelbert J. & Haug, Alfred A., 1990. "Tariffs and quotas under dynamic duopolistic competition," Journal of International Economics, Elsevier, vol. 29(1-2), pages 147-159, August.
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    Cited by:

    1. Agnieszka Wiszniewska-Matyszkiel & Marek Bodnar & Fryderyk Mirota, 2015. "Dynamic Oligopoly with Sticky Prices: Off-Steady-state Analysis," Dynamic Games and Applications, Springer, vol. 5(4), pages 568-598, December.
    2. repec:eee:ejores:v:269:y:2018:i:1:p:206-217 is not listed on IDEAS
    3. repec:spr:joptap:v:145:y:2010:i:3:d:10.1007_s10957-010-9673-6 is not listed on IDEAS
    4. L. Lambertini, 2013. "Coordinating Static and Dynamic Supply Chains with Advertising through Two-Part Tariffs," Working Papers wp874, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. repec:eee:energy:v:137:y:2017:i:c:p:325-335 is not listed on IDEAS
    6. repec:eee:ejores:v:267:y:2018:i:2:p:570-584 is not listed on IDEAS
    7. repec:eee:proeco:v:191:y:2017:i:c:p:128-142 is not listed on IDEAS
    8. repec:spr:joptap:v:149:y:2011:i:1:d:10.1007_s10957-010-9779-x is not listed on IDEAS
    9. Caputo, Michael R. & Ling, Chen, 2013. "The intrinsic comparative dynamics of locally differentiable feedback Nash equilibria of autonomous and exponentially discounted infinite horizon differential games," Journal of Economic Dynamics and Control, Elsevier, vol. 37(10), pages 1982-1994.
    10. Brekke, Kurt Richard & Cellini, Roberto & Siciliani, Luigi & Straume, Odd Rune, 2008. "Competition and quality in regulated markets with sluggish demand," CEPR Discussion Papers 6938, C.E.P.R. Discussion Papers.
    11. repec:eee:mateco:v:72:y:2017:i:c:p:95-103 is not listed on IDEAS
    12. Sheng, Li, 2010. "Competing or cooperating to host mega events: A simple model," Economic Modelling, Elsevier, vol. 27(1), pages 375-379, January.

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