On a generalized Cournot oligopolistic competition game

Simai He (), Xiaoguo Wang () and Shuzhong Zhang ()

Journal of Global Optimization, 2013, vol. 56, issue 4, 1335-1345

Abstract: We consider a model whereby players compete for a set of shared resources to produce and sell substitute products in the same market, which can be viewed as a generalization of the classical Cournot oligopolistic competition model, or, from a different angle, the Wardrop type routing model. In particular, we suppose that there are K players, who compete for the usage of resources as well as the sales of the end-products. Moreover, the unit costs of the shared resources and the selling prices of the products are assumed to be affine linear functions in the consumption/production quantities. We show that the price of anarchy in this case is lower bounded by 1/K, and this bound is essentially tight, which manifests the harsh nature of the competitive market for the producers. Copyright Springer Science+Business Media, LLC. 2013

Keywords: Cournot oligopoly competition; Nash equilibrium; Price of anarchy (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s10898-012-9844-0

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