(Optional) Look at my paper (with Bertel Schjerning and Fedor Iskhakov) on
The Dynamics of Bertrand Competition with Cost-Reducing Investments
which provides an infinite-horizon Markov-perfect equilibrium model of how two firms compete over
time. This paper was motivated by the work I talked about in the first lecture on the collusion
between the Australian cardboard producers Amcor and Visy. This model is the basis of my
counterfactual or "but-for" model of what competition between the two firms would have been, absent the "collusion on the
beach".