Summary Consider a homogeneous Stackelberg leader-follower duopoly with quantity competition, in which both firms face the same industry-wide marginal costs. This paper investigates the comparative static effects of a change in these marginal costs. We show that an increase of the costs will...

Summary We compare the dynamic behaviour of a given linear economic model with continuous time and two discrete time models derived from it. The latter two models with discrete time play an important role in the literature on econometric models with continuous time. We analyze and compare the...

Summary We consider a market with a profit-maximizing monopolistic firm. Utility-maximizing consumers either buy one unit of the good or none at all. The demand for the good is influenced by local social interactions. That is, the utility which a consumer derives from the consumption of the good...