A Dynamic Analysis of Cournot Duopoly in Imperfectly Competitive Product and Factor Markets

Carl Chiarella, Koji Okuguchi
1995 Social Science Research Network  
Assuming identical firms, a linear market demand function and a single factor of production, labour, we analyse the existence and stability of a homogeneous Cournot duopoly facing imperfect competition in both product and factor markets. We establish the possibility of antisymmetric equilibria separated by a unique symmetric equilibrium. Under certain assumptions on the wage function we are able to demonstrate local stability of the unique symmetric equilibrium, and its global stability under
more » ... l stability under the assumption of a convex reaction function.
doi:10.2139/ssrn.882581 fatcat:a6i64maiozhu7nohpkfn5mplyq