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Game theory has revolutionised our understanding of industrial organisation and the traditional theory of the firm …. Despite these advances, industrial economists have tended to rely on a restricted set of tools from game theory, focusing on … differential game theory to economics, argues that many dynamic phenomena in industrial organisation (such as monopoly, oligopoly …
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A dynamic Hotelling monopoly model is proposed, with the purpose of characterising the effects of informative and persuasive advertising in a regime of partial market coverage. The two models are solved to show the emergence of a unique saddle-point steady-state equilibrium in both cases. Then,...
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