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Pré-Publication, Document De Travail Année : 2024

Cournot oligopoly: a discrete time sticky-prices paradox

Résumé

This article studies the issue of sticky prices in the context of a dynamic Cournot oligopoly model in discrete time with n asymmetric firms, and with costs and demand linear. We recover the somewhat surprising fact of the related continuous time literature that the asymptotic price is lower than the price of the repeated game. But contrary to the continuous time case, in discrete time we find 1/ that the limit at vanishing viscosity coincides with the non-sticky case, and, more surprisingly 2/ that the equlibrium price trajectory oscillates around the asymptotic price.
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Dates et versions

hal-04390731 , version 1 (12-01-2024)

Identifiants

  • HAL Id : hal-04390731 , version 1

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Marc Deschamps, Pierre Bernhard. Cournot oligopoly: a discrete time sticky-prices paradox. 2024. ⟨hal-04390731⟩
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