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

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 143
Issue: C
Pages: 9-12

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We revisit Fujiwara’s (2008) linear–quadratic differential duopoly game to show that the degenerate nonlinear feedback identified by the tangency point with the stationary state line is indeed unstable, given the dynamics of the natural resource exploited by firms. To do so, we fully characterise the continuum of nonlinear feedback solution via Rowat’s (2007) method, thereby identifying the infinitely many stable nonlinear feedback equilibria. This entails that Rowat’s method can be used in games where each player’s instantaneous payoff depends quadratically on all players’ controls.

Technical Details

RePEc Handle
repec:eee:ecolet:v:143:y:2016:i:c:p:9-12
Journal Field
General
Author Count
2
Added to Database
2026-01-25