We investigate the Cournot–Ramsey differential game using a homogeneous good oligopoly with three different specifications of market demand: convex, linear and concave, allowing us to obtain fully analytical solutions in the presence of linear cost functions. The analysis of the static game predicts that the ranking of equilibrium quantities across the three market configurations is changing as the choke price changes, and this exerts an impact on the steady-state solution of the differential game, in particular on the attainment of the Ramsey golden rule. We also show that, the game being state-redundant, the degenerate feedback strategies emerging under open-loop information do not include the Ramsey equilibrium.
On the Cournot-Ramsey Model with Non-linear Demand Functions / Lambertini L.; Leitmann G.. - STAMPA. - 25:(2021), pp. 249-265. [10.1007/978-3-030-54576-5_11]
On the Cournot-Ramsey Model with Non-linear Demand Functions
Lambertini L.
;
2021
Abstract
We investigate the Cournot–Ramsey differential game using a homogeneous good oligopoly with three different specifications of market demand: convex, linear and concave, allowing us to obtain fully analytical solutions in the presence of linear cost functions. The analysis of the static game predicts that the ranking of equilibrium quantities across the three market configurations is changing as the choke price changes, and this exerts an impact on the steady-state solution of the differential game, in particular on the attainment of the Ramsey golden rule. We also show that, the game being state-redundant, the degenerate feedback strategies emerging under open-loop information do not include the Ramsey equilibrium.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
