Titre
Markovian Equilibria in a Model of Investment Under Imperfect Competition

Conférencier
FAGART, Thomas (Paris School of Economics, Université Paris I, France)

Résumé
In this paper, we develop and analyze a dynamic model of partially reversible investment, and characterize Markovian equilibria when players' strategies are continuous in the state variable. We show that this equilibrium may preserve initial asymmetry in capacity in the short term, but the firms become symmetric in the long term. The existence of Markovian equilibria with non-continuous strategies is also discuss, and we show that collusion can be sustained in such non-continuous markovian framework.