- Title
- On computation of optimal strategies in oligopolistic markets respecting the cost of change
- Creator
- Outrata, Jiri; Valdman, Jan
- Date
- 2020
- Type
- Text; Journal article
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/175973
- Identifier
- vital:15044
- Identifier
-
https://doi.org/10.1007/s00186-020-00721-x
- Identifier
- ISBN:1432-2994 (ISSN)
- Abstract
- 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. © 2020, Springer-Verlag GmbH Germany, part of Springer Nature.
- Publisher
- Springer Science and Business Media Deutschland GmbH
- Relation
- Mathematical Methods of Operations Research Vol. 92, no. 3 (2020), p. 489-509; http://purl.org/au-research/grants/arc/DP160100854
- Rights
- All metadata describing materials held in, or linked to, the repository is freely available under a CC0 licence
- Rights
- Copyright © Springer-Verlag GmbH Germany, part of Springer Nature 2020
- Rights
- Open Access
- Subject
- 0102 Applied Mathematics; 0103 Numerical and Computational Mathematics; 0802 Computation Theory and Mathematics; Cost of Change; Equilibrium; Generalized equation
- Full Text
- Reviewed
- Funder
- The research of J. V. Outrata was supported by the Czech Science Foundation (GA
- Hits: 1070
- Visitors: 1073
- Downloads: 93
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Accepted version | 580 KB | Adobe Acrobat PDF | View Details Download |