“Equilibrium models of production and capacity expansion”
Lunedì 6 Maggio 2024, ore 10:30 - Aula 1BC45 - Kostas Kardaras (London School of Economics)
Abstract
We consider a model with producers making decisions on how much to produce and how much to invest in expansion of capacity of future production. With demand functions exogenously given, we study a multi-agent setting where prices are formed within equilibrium.
Depending on the form of the production function, this leads to either a singular or standard control problem. The solutions to the latter are either given explicitly, or characterised via a second-order non-linear ODE.
(Based on works with Junchao Jia, Alexander Pavlis and Michael Zervos.)
