Title

Continuous-time dynamic games for the Cournot adjustment process for competing oligopolists

Authors

Authors

B. C. Snyder; R. A. Van Gorder;K. Vajravelu

Comments

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Abbreviated Journal Title

Appl. Math. Comput.

Keywords

Cournot adjustment; Continuous-time dynamic game; Cournot oligopoly; Nonlinear dynamics; STABILITY; DUOPOLY; MODELS; Mathematics, Applied

Abstract

Under the assumption of an iso-elastic demand function, we consider a continuous-time dynamic Cournot adjustment game for n oligopolists. We first show the existence and uniqueness of a positive Cournot equilibrium and, for any n, we show that positive response functions are bounded in time. For the n = 3 case, we analytically show that the positive equilibrium is locally asymptotically stable, while, for n > 3, we are able to give some asymptotic results. As an application, we then introduce a proportional tax or subsidy to the model, and discuss the influence of such policies on the positive equilibrium. Furthermore, we briefly discuss a generalization of the results to non-iso-elastic demand functions. Comments on possible areas of future work are given. (C) 2013 Elsevier Inc. All rights reserved.

Journal Title

Applied Mathematics and Computation

Volume

219

Issue/Number

12

Publication Date

1-1-2013

Document Type

Article

Language

English

First Page

6400

Last Page

6409

WOS Identifier

WOS:000315708700002

ISSN

0096-3003

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