A theory of dynamic oligopoly, III Cournot competition Export

@article{citeulike:3680324, abstract = {We study the Markov perfect equilibrium (MPE) of an alternating move, infinite horizon duopoly model where the strategic variable is quantity. We exhibit a pair of difference-differential equations that, when they exist, differentiable MPE strategies satisfy. For quadratic payoff functions, we solve these equations in closed form and demonstrate that the MPE corresponding to the solution is the limit of the finite horizon equilibrium as the horizon tends to infinity. We conclude with a discussion of adjustment costs and endogenization of the timing.}, author = {Maskin, E.}, citeulike-article-id = {3680324}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/0014-2921(87)90008-0}, citeulike-linkout-1 = {http://linkinghub.elsevier.com/retrieve/pii/0014-2921(87)90008-0}, doi = {10.1016/0014-2921(87)90008-0}, issn = {00142921}, journal = {European Economic Review}, keywords = {game\_theory, industrial\_organization, microeconomic\_theory}, month = {June}, number = {4}, pages = {947--968}, posted-at = {2008-11-24 07:10:31}, priority = {5}, title = {A theory of dynamic oligopoly, III Cournot competition}, url = {http://dx.doi.org/10.1016/0014-2921(87)90008-0}, volume = {31}, year = {1987} }

TY - JOUR ID - citeulike:3680324 L3 - citeulike-article-id:3680324 N2 - We study the Markov perfect equilibrium (MPE) of an alternating move, infinite horizon duopoly model where the strategic variable is quantity. We exhibit a pair of difference-differential equations that, when they exist, differentiable MPE strategies satisfy. For quadratic payoff functions, we solve these equations in closed form and demonstrate that the MPE corresponding to the solution is the limit of the finite horizon equilibrium as the horizon tends to infinity. We conclude with a discussion of adjustment costs and endogenization of the timing. IS - 4 JF - European Economic Review SN - 00142921 EP - 968 TI - A theory of dynamic oligopoly, III Cournot competition VL - 31 SP - 947 KW - game_theory KW - industrial_organization KW - microeconomic_theory AU - Maskin, E PY - 1987/06// UR - http://dx.doi.org/10.1016/0014-2921(87)90008-0 ER -