| Article ID: | iaor200972970 |
| Country: | United Kingdom |
| Volume: | 30 |
| Issue: | 6 |
| Start Page Number: | 562 |
| End Page Number: | 572 |
| Publication Date: | Nov 2009 |
| Journal: | Optimal Control Applications and Methods |
| Authors: | Lambertini Luca, Palestini Arsen |
A differential oligopoly game with advertising is investigated, where different dynamics occur between two groups of agents, the former playing a competitive Nash game and the latter cooperating as a cartel. Sufficient conditions for stability and a qualitative analysis of the profit ratio and social welfare at equilibrium are provided. A threshold value for the size of the competitive fringe is pointed out by a suitable numerical simulation.