Game theory has revolutionised our understanding of industrial organisation and the traditional theory of the firm. Despite these advances, industrial economists have tended to rely on a restricted set of tools from game theory, focusing on static and repeated games to analyse firm structure and behaviour. Luca Lambertini, a leading expert on the application of differential game theory to economics, argues that many dynamic phenomena in industrial organisation (such as monopoly, oligopoly, advertising, R&D races) can be better understood and analysed through the use of differential games. After illustrating the basic elements of the theory, Lambertini guides the reader through the main models, spanning from optimal control problems describing the behaviour of a monopolist through to oligopoly games in which firms' strategies include prices, quantities and investments. This approach will be of great value to students and researchers in economics and those interested in advanced applications of game theory.
| ISBN: | 9781316616499 |
| Publication date: | 26th April 2018 |
| Author: | Luca (Università degli Studi, Bologna, Italy) Lambertini |
| Publisher: | Cambridge University Press |
| Format: | Paperback |
| Pagination: | 272 pages |
| Genres: |
Economics of industrial organization Game theory Applied mathematics Econometrics and economic statistics Optimization |