A DYNAMIC-MODEL OF DIFFERENTIATED OLIGOPOLY WITH CAPITAL ACCUMULATION

Authors
CELLINI R LAMBERTINI L
Citation
R. Cellini et L. Lambertini, A DYNAMIC-MODEL OF DIFFERENTIATED OLIGOPOLY WITH CAPITAL ACCUMULATION, Journal of economic theory (Print), 83(1), 1998, pp. 145-155
Citations number
17
Categorie Soggetti
Economics
Journal title
Journal of economic theory (Print) → ACNP
ISSN journal
00220531
Volume
83
Issue
1
Year of publication
1998
Pages
145 - 155
Database
ISI
SICI code
0022-0531(1998)83:1<145:ADODOW>2.0.ZU;2-#
Abstract
We consider a dynamic model of differentiated oligopoly with capital a ccumulation. We prove that the model may converge to either a steady s tate replicating the optimum of the static problem, or a steady state driven by capital accumulation alone. In the latter case, the same ste ady state equilibrium is observed under both Cournot and Bertrand comp etition, as well as social planning. Journal of Economic Literature Cl assifications Numbers: C73, L13. (C) 1998 Academic Press.