Article ID: | iaor2006850 |
Country: | Germany |
Volume: | 10 |
Issue: | 4 |
Start Page Number: | 335 |
End Page Number: | 356 |
Publication Date: | Dec 2002 |
Journal: | Central European Journal of Operations Research |
Authors: | Szidarovszky Ferenc, Chiarella Carl |
The asymptotic behavior of dynamic Bertrand oligopolies is discussed when the firms react to price changes with some time delay in order to follow smoothly the longer term tendencies of the market. The resulting price dynamics is described by a system of nonlinear integro-differential equations. The local stability of the equilibrium and its dependence on key model parameters is examined and the conditions under which the price fluctuations, such as limit cycles, may occur are obtained.