OPTIMAL CONTROL OF INVESTMENTS IN A DYNAMIC MODELS OF DUOPOLY

Abstract

The paper studies profit maximization in three dynamic models of duopoly. The first one describes the dynamics of production and capital-labor ratio with equilibrium price, the second - the same problem with non-equilibrium price and the third one analyzes the optimal external financing of capital expenditures and working capital.

Keywords

• optimal control of investments
• optimal external financing
• duopoly
• profit
• optimization