Abstract
This paper explores the relationship between dynamic oligopolistic competition and static conjectural variations equilibria. Using an infinite horizon adjustment cost model, the author demonstrates that any steady state closed-loop (subgame-perfect) equilibrium coincides with a conjectural variations equilibrium. In the case of linear demand and quadratic costs, the dynamic conjectures consistent with closed-loop steady state equilibria are negative, constant, symmetric, and vary continuously with the discount rate (and the adjustment cost parameter) in an interval between the static consistent conjectures and zero (Cournot). Copyright 1992 by Blackwell Publishing Ltd.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
