Institute of Information Theory and Automation

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Bibliography

Journal Article

On computation of optimal strategies in oligopolistic markets respecting the cost of change

Outrata Jiří, Valdman Jan

: Mathematical Methods of Operations Research vol.92, 3 (2020), p. 489-509

: GA17-08182S, GA ČR, GA17-04301S, GA ČR

: Generalized equation, Equilibrium, Cost of Change

: 10.1007/s00186-020-00721-x

: http://library.utia.cas.cz/separaty/2020/MTR/outrata-0531319.pdf

: https://link.springer.com/article/10.1007/s00186-020-00721-x

(eng): The paper deals with a class of parameterized equilibrium problems, where the objectives of the players do possess nonsmooth terms. The respective Nash equilibria can be characterized via a parameter-dependent variational inequality of the second kind, whose Lipschitzian stability, under appropriate conditions, is established. This theory is then applied to evolution of an oligopolistic market in which the firms adapt their production strategies to changing input costs, while each change of the production is associated with some “costs of change”. We examine both the Cournot-Nash equilibria as well as the two-level case, when one firm decides to take over the role of the Leader (Stackelberg equilibrium). The impact of costs of change is illustrated by academic examples.

: BA

: 10101

2019-01-07 08:39