Dynamic Oligopolistic Pricing with Endogenous Change in Market Structure and Market Potential in an Epidemic Diffusion Model

Ziesemer, Thomas (1993): Dynamic Oligopolistic Pricing with Endogenous Change in Market Structure and Market Potential in an Epidemic Diffusion Model.

Abstract

This paper uses a model (consisting of a linear estimate of a demand curve, a linear quadratic cost curve and a logistic diffusion curve) and four types of imperfectly competitive behaviour — monopolistic intertemporal profit maximization, a dynamic Bertrand oligopoly, and a duopolistic differential game with endogenous market potential, which leads to a Stackelberg leadership situation or a phase of pure monopoly. The implied impact from the change in market structure on the S-shaped diffusion curve is derived and drawn.

• Item Type: MPRA Paper
• Language: English
• Keywords: Imperfect competition, endogenous market structure, diffusion.
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games ; Evolutionary Games ; Repeated Games; D - Microeconomics > D4 - Market Structure, Pricing, and Design; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection

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