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On the Feedback Solution of a Differential Oligopoly Game with Capacity Adjustment

Davide Dragone, Luca Lambertini, Arsen Palestini
2011 Social Science Research Network  
We propose a simple method for characterising analytically the feedback solution of oligopoly games with capital accumulationà 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 Classification: C73, L13, Q55
doi:10.2139/ssrn.1791542 fatcat:xbp7g44jkvgytjsl6wvd5pqdfi