Extensions and Generalizations
This chapter will generalize and extend the results on dynamic oligopolies presented in Chapters 4 and 5. The first two subsections discuss a natural extension of oligopoly problems, namely quadratic games. In earlier investigations we always considered time independent price and cost functions. This is unrealistic since changes in input prices, technical progress, et cetera, affect cost and/or demand functions. In such models we should therefore assume that the price function and all cost functions are time dependent. In Section 6.3 we will investigate special time dependent oligopolies. Section 6.4 and 6.5 introduce nonlinear models and conditions for the stability of equilibria in nonlinear oligopolies.
KeywordsEquilibrium Point Unit Circle Lyapunov Function Global Stability Time Dependent Process
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