2001 Fiscal Year Final Research Report Summary
A Dynamic General Equilibrium Analysis to the Coase's Conjecture.
| Project/Area Number |
11630024
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
経済理論
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| Research Institution | Fukuoka University |
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Principal Investigator |
HAYASHI Moto Faculty of Ecomomics, Fukuoka University, Professor, 経済学部, 教授 (10090789)
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| Co-Investigator(Kenkyū-buntansha) |
FUJIMOTO Hiroaki Faculty of Ecomomics, Fukuoka University, Associate Professor, 経済学部, 助教授 (50209102)
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| Project Period (FY) |
1999 – 2001
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| Keywords | Durable Good / Increasing Marginal Costs / Coase's Conjecture / LQ Control Problem / Reid's method / Matrix Defferential Equation of Riccati Type / Optimak Control Law / 行列リャプノフ関数 |
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| Research Abstract |
Say it is known that a monopoly firm produces a durable goad with increasing marginal costs, At what price will she sell the good to consumers? Coase (1972) conjectures with a static model that the price (and the total stock of the good owned by consumers) will move towards a competitive level rather than towards a monopolistic one unless she reduces the durability of the good. In this report, we would like to show with a dynamic model of a so-called LQ (linear quadratic) control problem, in which the model has a system of 2 linear differential equations of the price and stock and a quadratic evaluation functional of her profit, that what determines the Coase s conjecture and how she should control a rate of output of the good. We employ the Reid s method in order to resolve a matrix differential equation of Riccati type and obtain the firm s optimal control law, which does not depend upon initial states of the price and stock, for her profit maximization problem of the durable good.
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