Matsumoto, Akio; Szidarovszky, Ferenc - In: Economic Modelling 42 (2014) C, pp. 220-229
This paper aims to show that delay matters in continuous- and discrete-time framework. It constructs a simple dynamic model of a boundedly rational monopoly. First the existence of the unique equilibrium state is proved under general price and cost function forms. Conditions are derived for its...