Dynamic models of oligopoly†
DREW FUDENBERG and JEAN TIROLE
THIS MONOGRAPH surveys some recent work on dynamic oligopoly. While we have tried to cover a selection of topics that is a fairly representative sample of current research, these notes are not intended as an exhaustive survey of the field. As will become clear, we have to a large extent selected topics closely related to our own work.
As the title suggests, we focus mainly on the formalization of strategic relationships. We should acknowledge the literature describing the behavior of a competitive firm as a dynamic control problem (e.g., Gaskins , Jacquemin , Lesourne ). This literature considered the dynamic problem of a firm in a market environment that ...