Existence of a Markov perfect equilibrium in a third market model

• Type: Article in International Scientific Journal
• Date: 2000

Authors

Sofia B. S. D. Castro (Author) FEP; António Abilio Garrido da Cunha Brandão (Author) FEP

Journal

Title: Economics Letters

Vol. 66

Pages: 297-301

ISSN: 0165-1765

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 4 Citations

Scopus - 2 Citations

Other information

Authenticus ID: P-001-0N5

DOI: 10.1016/s0165-1765(99)00208-6

Abstract (EN): We modify Maskin and Tirole's [Maskin, E., Tirole, J., 1987. A theory of dynamic oligopoly? III. European Economic Review 31, 947-968] model to prove the existence of a Markov perfect equilibrium in a dynamic version of Brander and Spencer's [Brander, J.A., Spencer, B.J., 1985. Export subsidies and market share rivalry. Journal of International Economics 18, 83-100] 'third-market model', introducing the government as a third player. We prove the existence of a Markov perfect equilibrium for any value of the discount factor.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 5