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We study a stochastic dynamic game of process innovation in which firms can initiate and terminate R&D efforts and production at different times. We discern the impact of knowledge spillovers on the investments in existing markets, as well as on the likely structure of newly forming markets, for...
Persistent link: https://www.econbiz.de/10010395083
We model capacity-building investments in a homogeneous product duopoly facing uncertain demand growth. Capacity …
Persistent link: https://www.econbiz.de/10013119144
We present a continuous-time real options game in which two firms must decide at each instant of time whether to be in or out of a market that expands up to a random maturity date and contracts thereafter. Firms differ only in the opportunity costs of usage of the assets they employ (e.g., owing...
Persistent link: https://www.econbiz.de/10014073531
This article is devoted to a survey of results for differential games obtained through Viability Theory. We recall the basic theory for differential games (obtained in the 1990s), but we also give an overview of recent advances in the following areas : games with hard constraints, stochastic...
Persistent link: https://www.econbiz.de/10011166493
This article is devoted to a survey of results for differential games obtained through Viability Theory. We recall the basic theory for differential games (obtained in the 1990s), but we also give an overview of recent advances in the following areas : games with hard constraints, stochastic...
Persistent link: https://www.econbiz.de/10008799443
We propose a simple method for characterising analytically the feedback solution of oligopoly games with capital accumulation à la Solow-Swan. As a result, it becomes possible to contrast the feedback equilibrium against the corresponding one generated by open-loop information. Our method...
Persistent link: https://www.econbiz.de/10011737241
In this paper, we investigate the profitability of horizontal mergers of firms with price adjustments. We take a differential game approach and both the open-loop as well as the closed-loop equlibria are considered. We show that the merger incentive is determined by how fast the price adapts to...
Persistent link: https://www.econbiz.de/10011737252
A technique to determine closed-loop Nash equilibria of n-player differential games is developed when their dynamic state-control system is composed of decoupled ODEs. In particular, the theory of Lie point symmetries is exploited to achieve first integrals of such systems.
Persistent link: https://www.econbiz.de/10011739818
I characterise the subgame perfect equilibrium of a differential market game with hyperbolic demand where firms are quantity-setters and accumulate capacity over time à la Ramsey. I show that the open-loop solution is subgame perfect. Then, I analyse the feasibility of horizontal mergers, and...
Persistent link: https://www.econbiz.de/10011739873
We characterise the subgame perfect equilibrium of a differential market game with hyperbolic inverse demand where firms are quantity-setters and accumulate capacity over time à la Ramsey. The related Hamilton-Jacobi-Bellman are solved in closed form both on infinite and on finite horizon...
Persistent link: https://www.econbiz.de/10011731041