Weintraub, Gabriel; Benkard, Lanier; Roy, Benjamin Van - Society for Economic Dynamics - SED - 2006
We propose an approximation method for analyzing Ericson and Pakes (1995)-style dynamic models of imperfect competition. We develop a simple algorithm for computing an ``oblivious equilibrium,'' in which each firm is assumed to make decisions based only on its own state and knowledge of the long...