The suboptimality of optimal punishments in Cournot supergames

We investigate, within a Cournot supergame, whether optimal punishments may become suboptimal when economies of scale are not negligible. We show that, for sufficiently strong increasing returns to scale, the critical discount factor associated to grim trigger strategies is lower than the one associated to optimal penal codes

Differential games in industrial organization

In this chapter, we provide an overview of continuous-time games in industrial organization, covering classical papers on adjustment costs, sticky prices, and R&D races, as well as more recent contributions on oligopolistic exploitation of renewable productive assets and strategic investments under uncertainty