Higher order lags in price-adjusting oligopoly

L Schoonbeek*

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

3 Citaten (Scopus)

Samenvatting

We consider price-adjusting oligopoly models involving Bertrand or adaptive expectations concerning the rivals' prices. Traditionally, one specifies these models with first order exponential adjustment lags. We introduce specific higher order exponential lags in both models, which provides a more flexible and richer dynamic specification. We show that in both cases the model with higher order lags is stable if and only if the model with first order lags is stable.

Originele taal-2English
Pagina's (van-tot)547-555
Aantal pagina's9
TijdschriftEconomic Theory
Volume7
Nummer van het tijdschrift3
StatusPublished - apr-1996

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