A Dynamic Analysis of Cournot Duopoly in Imperfectly Competitive Product and Factor Markets
|Author(s):||Carl Chiarella & Koji Okuguchi|
|Date of publication:||March 1995|
|Working paper number:||43|
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. Under the assumption of a fairly general wage function we are able to demonstrate local stability of the unique equilibrium, and global stability under the assumption of a convex reaction function.
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Published as: Chiarella, C. and Okuguchi, K., 1997, "A Dynamic Analysis of Cournot Duopoly in Imperfectly Competitive Product and Factor Markets", Keio Economic Studies, 34(1), 21-33.
Chiarella, C. and Szidarovszky, F., 2002, "The Asymptotic Behavior of Dynamic Rent-Seeking Games", Computers and Mathematics with Applications, 43(1-2), 169-178.
Chiarella, C. and Szidarovszky, F., 2009, "Existence and Uniqueness in Cournot Models with Cost Externalities", Mathematica Pannonica, 20(1), 1-9.
Engel, A. A., 2002, "Dynamic Market Games with Time Delays and their Application to International Fishing", Working Paper, University of Arizona.