Abstract:
The theory of dynamic oligopolies is outlined. The asymptotical stability of
the equilibrium is first verified under realistic conditions, with and without full information
on the demand functions. In the presence of information lags instability
might occur. By assuming continuously distributed time lags in obtaining and
implementing information on the rival's outputs a nonlinear integra-differential
equation is obtained. We investigate the possibility of limit cycles around the
equilibrium.
