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Mixed oligopoly with consistent conjectures

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  • Kalashnikov, Vyacheslav V.
  • Bulavsky, Vladimir A.
  • Kalashnykova, Nataliya I.
  • Castillo, Felipe J.

Abstract

In this paper, we consider a model of mixed oligopoly with conjectural variations equilibrium (CVE). The agents' conjectures concern the price variations depending upon their production output's increase or decrease. We establish existence and uniqueness results for the conjectural variations equilibrium (called an exterior equilibrium) for any set of feasible conjectures. To introduce the notion of an interior equilibrium, we develop a consistency criterion for the conjectures (referred to as influence coefficients) and prove the existence theorem for the interior equilibrium (understood as a CVE with consistent conjectures). To prepare the base for the extension of our results to the case of non-differentiable demand functions, we also investigate the behavior of the consistent conjectures in dependence upon a parameter representing the demand function's derivative with respect to the market price.

Suggested Citation

  • Kalashnikov, Vyacheslav V. & Bulavsky, Vladimir A. & Kalashnykova, Nataliya I. & Castillo, Felipe J., 2011. "Mixed oligopoly with consistent conjectures," European Journal of Operational Research, Elsevier, vol. 210(3), pages 729-735, May.
    • Handle: RePEc:eee:ejores:v:210:y:2011:i:3:p:729-735
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    2. Ayzenberg, N. & Kiseleva, N. & Zorkaltsev, V., 2013. "Models of Imperfect Competition in Analysis of Siberian Electricity Market," Journal of the New Economic Association, New Economic Association, vol. 18(2), pages 62-88.
    3. Viacheslav Kalashnikov & Nataliya Kalashnykova & José G. Flores-Muñiz, 2022. "Special Issue on Variational Inequalities: Consistent Conjectural Variations Coincide with the Nash Solution in the Meta-Model," Networks and Spatial Economics, Springer, vol. 22(2), pages 289-313, June.
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    6. Gil-Moltó, Maria José & Poyago-Theotoky, Joanna & Rodrigues-Neto, José A. & Zikos, Vasileios, 2020. "Mixed oligopoly, cost-reducing research and development, and privatisation," European Journal of Operational Research, Elsevier, vol. 283(3), pages 1094-1106.

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