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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.

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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.

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