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The Effects of Delays on the Stability and Rate of Convergence to Equilibrium of Oligopolies *
Author(s) -
RUSSELL ALLEN M.,
RICKARD JOHN A.,
HOWROYD T.D.
Publication year - 1986
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1986.tb00894.x
Subject(s) - oligopoly , cournot competition , stability (learning theory) , convergence (economics) , economics , rate of convergence , mathematical economics , mathematics , mathematical optimization , computer science , computer network , channel (broadcasting) , machine learning , economic growth
The stability of oligopolies is investigated using the Cournot strategy and a general output adjustment procedure. Information delays are incorporated in the adjustment procedure and their specific effects upon the dynamic stability of oligopolies is investigated. The stability of equilibrium for discrete models is unaffected by information delays and remoteness of planning horizons; however the rate of convergence to equilibrium may be slowed. For continuous models with delays, some restraints are required for stability.