Abstract
We show that the Cournot oligopoly game with non-linear market demand can be reformulated as a best-response potential game where the best-response potential function is linear-quadratic in the special case where marginal cost is normalized to zero. We also propose a new approach to show that the open-loop differential game with Ramsey dynamics admits a best-response Hamiltonian potential corresponding to the sum of the best-response potential function of the static game plus the scalar product of transition functions multiplied by the fictitious costate variables. Unlike the original differential game, its best-response representation yields the map of the instantaneous best reply functions.
Sign-in/Register to access full text options 
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 callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
