We show that the Cournot oligopoly game with non-linear market demand can be reformulated as a best-response potential game where the best-response potential function is linear-quadratic in the special case where marginal cost is normalized to zero. We also propose a new approach to show that the open-loop differential game with Ramsey dynamics admits a best-response Hamiltonian potential corresponding to the sum of the best-response potential function of the static game plus the scalar product of transition functions multiplied by the fictitious costate variables. Unlike the original differential game, its best-response representation yields the map of the instantaneous best reply functions.View full textDownload full textKeywordspotential function, potential game, Cournot oligopolyAMS Subject Classifications:C72, L13Related var addthis_config = { ui_cobrand: "Taylor & Francis Online", services_compact: "citeulike,netvibes,twitter,technorati,delicious,linkedin,facebook,stumbleupon,digg,google,more", pubid: "ra-4dff56cd6bb1830b" }; Add to shortlist Link Permalink http://dx.doi.org/10.1080/02331934.2010.541457
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