Caruana, Guillermo (contributor); Einav, Liran (contributor) - 2006
to an equilibrium path, in which production plans are flat at t =0
and gradually decline thereafter (see also Figure 10 … flat because, in equilibrium, initial production plans (q
∗
i
,q
∗
j
) satisfy
∂V
i0
i
(q
∗
i
,q
∗
j
)
∂q
i
=0.From … player i chooses x
t
i
∈R, which controls the rate
at which she changes her production plan, i.e. q
0
i
(t)=x
t
i
.Notethatx …