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GERAD seminar

Technological choice in an evolutionary oligopoly game


Oct 31, 2019   11:00 AM — 12:00 PM

Fabio Lamantia Universitá della Calabria, Italy

We propose and analyze a two-stage oligopoly game in which firms first simultaneously choose production technologies and in the second stage simultaneously choose production quantities. After characterizing the Nash equilibrium of the game, we cast our static model in a dynamic setting exploring the stability properties of the market equilibrium in two different cases: (i) exogenous technology distribution and Cournot adjustments; (ii) endogenous technology distribution in an infinite population game with Cournot-Nash equilibrium outputs. The main aim of the paper is that of extending the results about Cournot oligopoly stability in an evolutionary setting of heterogeneous decreasing returns-to-scale technologies. We show how the interplay between production decisions and R&D decisions can generate endogenous market fluctuations leading to complex dynamic phenomena.

Free entrance.
Welcome to everyone!

Georges Zaccour organizer


Room 4488
André-Aisenstadt Building
Université de Montréal Campus
2920, chemin de la Tour
Montréal QC H3T 1J4

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