Dynamic oligopoly: Models with incomplete information (Q804460)

The authors study an oligopoly with N firms with quadratic cost functions and a linear inverse demand function. The firms adjust their outputs from one period to the next according to certain rules (Cournot, adaptive, extrapolative expectations). These adjustment rules may be based on - partly - incorrect information about the parameters of the model (demand function or cost functions). Conditions are given under which such adjustment processes are asymptotically stable.