The Nonlinear Cournot Model Under Uncertainty with Continously Distributed Time Lags

Abstract

Dynamic oligopolies are examined when firms have inaccurate knowledge of the demand functions. Under a realistic concavity assumption the local asymptotic stability of the equilibrium is proved. If time lags are introduced in obtaining information on the output of the rivals as well as on the firms' own output, then local instability may occur. The birth of limit cycles is investigated, and the symmetric case is examined in detail.