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This paper investigates dynamic process innovation in a product differentiated market where firms can reinvest present … profits to reduce future costs. The focus is set on the market performance when the number of competing firms is determined by … optimal market structure …
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product market that drives their ex post profits to zero. Our analysis provides a new interpretation of “price wars”. Instead …
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This paper considers the existence and computation of Markov perfect equilibria in games with a "monotone" structure. Specifically, it provides a constructive proof of the existence of Markov perfect equilibria for a class of games in which a) there is a continuum of players, b) each player has...
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We define a class of dynamic Markovian games that we call directional dynamic games (DDG) in which directionality is represented by a partial order on the state space. We propose a fast and robust state recursion algorithm that can find a Markov perfect equilibrium (MPE) via backward induction...
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