Non-smooth Dynamics and Multiple Equilibria in a Cournot-Ramsey Model with Endogenous Markups
Paulo Brito (),
Luis Costa () and
Huw Dixon ()
No E2008/21, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section
We consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes: monopoly and oligopoly. We study the non-smooth dynamics and analyze the global dynamics of the model, demonstrating the model exhibits robust heteroclinic orbits, either of the smooth or the non-smooth type. Similar economies may be in any of these regimes and they may change regime along its convergence path. Productivity, fixed costs and elasticities of demand, play a crucial role and changing their values may induce a discontinuous transition or hysteresis.
Keywords: endogenous mark-ups; non-smooth dynamics; discontinuous induced bifurcations; heteroclinic orbits (search for similar items in EconPapers)
JEL-codes: C62 D43 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-mac and nep-mic
Date: 2008-09, Revised 2010-07
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups (2013)
Working Paper: Non-Smooth Dynamics and Multiple Equilibria in a Cournt-Ramsey Model with Endogenous Markups (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cdf:wpaper:2008/21
Access Statistics for this paper
More papers in Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section Contact information at EDIRC.
Bibliographic data for series maintained by Yongdeng Xu ().