Can Producers’ Price War End Up in an Optimal Allocation?

Marta Kornafel
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Marta Kornafel: Department of Mathematics, Cracow University of Economics, ul. Rakowicka 27, 31-510 Kraków, Poland

Mathematics, 2022, vol. 10, issue 2, 1-6

Abstract: The paper presents a theoretical framework for the phenomenon of the price war in the context of general equilibrium, with special attention to the production system. The natural question that arises is whether Nash-optimal production plans being the reactions to the changing prices can finally approximate a Nash-optimal production plan at the end of this war. To provide an answer, the production system is described as a parametric-multicriteria game. Referring to some results on the lower semicontinuty of the parametric weak-multicriteria Nash equilibria, we provide a positive answer for the stated problem.

Keywords: general equilibrium; lower semicontinuity of weak Nash equilibria; price war (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
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