Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
4628968 | Applied Mathematics and Computation | 2013 | 10 Pages |
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.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Brooke C. Snyder, Robert A. Van Gorder, K. Vajravelu,