Differential Gaming Models of Oligopoly

actions adjustment costs approach assumes assumption behavior Bertrand capacity changes chapter choice choose closed closed-loop collusion commitment competitive compute conjectures consider consistent constant continuous corresponds Cournot decrease demand depends determine diagram differential game discussed dynamic games effect entry deterrence equal equilibrium strategies example exist expected Figure firm given gives goodwill gosub goto Hence increase incumbent infinite initial input investment leads level of capital limiting linear lower market share monopolist monopoly n.roots Nash equilibrium necessary numerically obtained oligopoly open-loop optimal output parameters particular path perfect equilibrium perfect Nash period player possible post-entry pre-entry present problem produce profits reaction function reason rem rem requirement response result return rem Riccati equations rival root satisfy shown shows solution solve stability starting static steady steady-state stopping strategies Suppose symmetric term theory unique value functions variable yield