Oligopoly with Hyperbolic Demand and Capital Accumulation
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
|Date of creation:||Jun 2009|
|Contact details of provider:|| Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna|
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-380, December.
- Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-122, February.
- Anderson, Simon P. & Engers, Maxim, 1992. "Stackelberg versus Cournot oligopoly equilibrium," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 127-135, March.
- L. Lambertini, 2007. "Volatility forecasting for crude oil futures," Working Papers 598, Dipartimento Scienze Economiche, Universita' di Bologna.
- Giacomo Calzolari & Luca Lambertini, 2006.
"Tariffs vs Quotas in a Model of Trade with Capital Accumulation,"
Review of International Economics,
Wiley Blackwell, vol. 14(4), pages 632-644, September.
- G. Calzolari & L. Lambertini, 2000. "Tariffs vs Quotas in a Model of Trade with Capital Accumulation," Working Papers 392, Dipartimento Scienze Economiche, Universita' di Bologna.
- Caputo, Michael R., 2007. "The envelope theorem for locally differentiable Nash equilibria of finite horizon differential games," Games and Economic Behavior, Elsevier, vol. 61(2), pages 198-224, November.
- Fershtman, Chaim & Kamien, Morton I, 1987. "Dynamic Duopolistic Competition with Sticky Prices," Econometrica, Econometric Society, vol. 55(5), pages 1151-1164, September.
- Calzolari, Giacomo & Lambertini, Luca, 2007. "Export restraints in a model of trade with capital accumulation," Journal of Economic Dynamics and Control, Elsevier, vol. 31(12), pages 3822-3842, December.
- G. Calzolari & L. Lambertini, 2001. "Export Restraints in a Model of Trade with Capital Accumulation," Working Papers 420, Dipartimento Scienze Economiche, Universita' di Bologna.
- Anderson, Simon P & Engers, Maxim, 1994. "Strategic Investment and Timing of Entry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(4), pages 833-853, November.
- Cellini, Roberto & Lambertini, Luca, 1998. "A Dynamic Model of Differentiated Oligopoly with Capital Accumulation," Journal of Economic Theory, Elsevier, vol. 83(1), pages 145-155, November. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:672. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dipartimento Scienze Economiche, Universita' di Bologna)
If references are entirely missing, you can add them using this form.