thresholds.m

Calculates entry and exit thresholds from oligopolists' equilibrium continuation values.

Contents

Create required equilibrium continuation values if necessary.

testrun=~exist('vFuncs','var');

if testrun
    bellman
end
Current plot held
Current plot held
Current plot held
Current plot held

Calculate the entry and exit thresholds.

bellman.m creates maxN, vFuncs, phi(.), and omega.

overlineC=zeros(maxN,1);
underlineC=zeros(maxN,1);

for i=1:maxN
    vi=squeeze(vFuncs(:,:,i));
    if min(vi(:,i))<=phi(i);
        overlineC(i)=omega(find(vi(:,i)<=phi(i),1,'last'));
    else
        overlineC(i)=omega(1);
    end

    if min(vi(:,i))==0;
        underlineC(i)=omega(find(vi(:,i)==0,1,'last'));
    else
        underlineC(i)=omega(1);
    end
end

Report results if this is a test run.

if testrun
    overlineC
    underlineC
end
overlineC =

   -1.5000
    0.0700
    0.4800
    1.0600


underlineC =

   -1.5000
   -0.6700
   -0.2600
    0.1000