On the (in)stability of nonlinear feedback solutions in a dynamic duopoly with renewable resource exploitation

نویسندگان

  • Luca Lambertini
  • Andrea Mantovani
چکیده

We revisit Fujiwara’s (2008) di¤erential duopoly game to show that the degenerate nonlinear feedback identi…ed by the tangency point with the stationary state line is indeed unstable, given the dynamics of the natural resource exploited by …rms. To do so, we fully characterise the continuum of nonlinear feedback solution via Rowat’s (2007) method, characterising the in…nitely many stable nonlinear feedback equilibria. JEL codes: C73, L13, Q2

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تاریخ انتشار 2016