| Abstract: | Summary This paper is a continuation of ‘A Dynamic Duopoly Model’ (De Economist, 1970, pp. 458–490). According to the argument given in that paper, each duopolist changes his price twice in each period:
first, there is an autonomous change, and, secondly, an induced one to neutralize the effect of the autonomous price change
of the other duopolist. In the present paper, however, it is assumed that both duopolists change their prices only once a
period. These ‘combined’ price changes are partly autonomous and partly induced; only the duopolist himself could tell in
how far they are autonomous or induced. The steady state solution of this model corresponds with the endogenously determined
duopoly solution of the earlier investigations. |
