LEARNING FROM EACH OTHER IN A DUOPOLY - NUMERICAL APPROACH

We consider a price-setting duopoly producing differentiated goods, wh ere the players can learn by doing and from each other. The unit produ ction cost is modelled as a decreasing function of accumulated knowled ge. The game is noncooperative, played in a discrete time over an infi nite horizon. Feedback Nash equilibrium strategies are sought. An algo rithm to compute such equilibria is given, and results of numerical ex periments concerned with symmetric and asymmetric duopolies are report ed.