Weak and Strong Time Consistency in Differential Oligopoly Games with Capital Accumulation

摘要

We illustrate two differential oligopoly games with capital accumulation where,udalternatively, the accumulation dynamics of productive capacity is modelledudeither `a la Solow—Swan or `a la Ramsey. We show that in the first caseudthe open-loop Nash equilibrium is only weakly time consistent, while in theudsecond it is strongly so, although the Ramsey game is not state linear.