Control of Dynamic Oligopsonies with Production factors

Abstract

Dynamic oligopsony is examined with discrete time scales. The controllability of the dynamic system is investigated where the competitive price is selected as the control variable. For the single product factor case complete characterization is given. A simple example illustrates that for the more general case no general solution can be given. We also elaborated the case when the fixed price of the production factors is the control variable. We show that the system is uncontrollable in this case.