A linear oligopoly model with adaptive expectations: Stability reconsidered (Q1101327)
From MaRDI portal
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | A linear oligopoly model with adaptive expectations: Stability reconsidered |
scientific article |
Statements
A linear oligopoly model with adaptive expectations: Stability reconsidered (English)
0 references
1988
0 references
The stability of the classical Cournot model is examined under adaptive expectations on the output of the rest of the industry. It is proven that the equilibrium is stable if and only if the speed of adjustment is less than \(4/(n+1)\), where \(n\) is the number of firms.
0 references
linear oligopoly model
0 references
stability
0 references
Cournot model
0 references
adaptive expectations
0 references
speed of adjustment
0 references
