Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159533
Authors: 
Lambertini, Luca
Year of Publication: 
2010
Series/Report no.: 
Quaderni - Working Paper DSE 692
Abstract: 
I characterise the subgame perfect equilibrium of a differential market game with hyperbolic demand where firms are quantity-setters and accumulate capacity over time à la Ramsey. I show that the open-loop solution is subgame perfect. Then, I analyse the feasibility of horizontal mergers, and compare the result generated by the dynamic setup with the merger incentive associated with the static model. It appears that allowing for the role of time makes mergers more likely to occur than they would on the basis of the static setting.
JEL: 
C73
L13
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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