On the feedback solution of a differential oligopoly game with capacity adjustment

Davide Dragone (), Luca Lambertini () and A. Palestini

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: We propose a simple method for characterising analytically the feedback solution of oligopoly games with capital accumulation à la Solow-Swan. As a result, it becomes possible to contrast the feedback equilibrium against the corresponding one generated by open-loop information. Our method accomodates extensions of the stripped down oligopoly model in several directions. As an example, we expand the setup to include environmental effects and Pigouvian taxation.

JEL-codes: C73 L13 Q55 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-gth
Date: 2011-03
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