Abstract:
Dynamic oligopolies arc examined without full information on the price function, with each finn
using a perceived price function that usually differs from the actual inverse demand function of the
market. It is assumed that firms experience time lags in obtaining and implementing information
on the price and also on output. Under realistic assumptions we show that without time lags the
steady state is always locally asymptotically stable whereas in the presence of time lags situations
of local instability may occur. The possibility of limit cycles is examined, and some special cases
are considered.
