Selection of Markov Equilibrium in a Dynamic Oligopoly with Production to Order

We use the requirement of continuity of strategies and the weakest possible criterion of renegotiation-proofness, called renegotiation-quasiproofness, to select a (limit of continuation equilibrium paths of a) Markov perfect equilibrium in an infinite horizon dynamic oligopoly with costly changes of output between the periods, producing to order a homogeneous good. In each renegotiation-quasiproof continuous strategy Markov perfect equilibrium every continuation equilibrium path converges in the price space to the symmetric price vector with each component equal to the monopoly price of the firm(s) with the lowest marginal costs of production