Note on ``Nash and Stackelberg solutions in a differential game model of capitalism'' (Q1186073)

This note addresses the solution obtained by \textit{M. Pohjola} [J. Econ. Dyn. Control 6, No. 1-2, 172-186 (1983)] of the worker-capitalist game originally proposed by \textit{K. Lancaster} [``The dynamic inefficiency of capitalism'', J. Political Econ. 81, 1092-1109 (1973)]. For the most probable values of the parameters it turns out that there are infinitely many open-loop Nash equilibria (including the one established by Pohjola). However, all these equilibria generate the same values of the two players' objective functionals so that the damage done by a shortcoming in Pohjola's analysis seems to be within limits.