IDEAS home Printed from https://ideas.repec.org/a/spr/mathme/v92y2020i3d10.1007_s00186-020-00721-x.html
   My bibliography  Save this article

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

Author

Listed:
  • Jiří V. Outrata

    (Czech Academy of Sciences
    Federation University of Australia)

  • Jan Valdman

    (Czech Academy of Sciences
    University of South Bohemia)

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.

Suggested Citation

  • Jiří V. Outrata & Jan Valdman, 2020. "On computation of optimal strategies in oligopolistic markets respecting the cost of change," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 92(3), pages 489-509, December.
    • Handle: RePEc:spr:mathme:v:92:y:2020:i:3:d:10.1007_s00186-020-00721-x
    DOI: 10.1007/s00186-020-00721-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00186-020-00721-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00186-020-00721-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nicola Basilico & Stefano Coniglio & Nicola Gatti & Alberto Marchesi, 2020. "Bilevel programming methods for computing single-leader-multi-follower equilibria in normal-form and polymatrix games," EURO Journal on Computational Optimization, Springer;EURO - The Association of European Operational Research Societies, vol. 8(1), pages 3-31, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhen-Ping Yang & Gui-Hua Lin, 2021. "Variance-Based Single-Call Proximal Extragradient Algorithms for Stochastic Mixed Variational Inequalities," Journal of Optimization Theory and Applications, Springer, vol. 190(2), pages 393-427, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rahman Khorramfar & Osman Ozaltin & Reha Uzsoy & Karl Kempf, 2024. "Coordinating Resource Allocation during Product Transitions Using a Multifollower Bilevel Programming Model," Papers 2401.17402, arXiv.org.
    2. Bjørndal, Endre & Bjørndal, Mette Helene & Coniglio, Stefano & Körner, Marc-Fabian & Leinauer, Christina & Weibelzahl, Martin, 2023. "Energy storage operation and electricity market design: On the market power of monopolistic storage operators," European Journal of Operational Research, Elsevier, vol. 307(2), pages 887-909.
    3. Bustamante-Faúndez, Pamela & Bucarey L., Víctor & Labbé, Martine & Marianov, Vladimir & Ordoñez, Fernando, 2024. "Playing Stackelberg Security Games in perfect formulations," Omega, Elsevier, vol. 126(C).
    4. Stefano Coniglio & Mathias Sirvent & Martin Weibelzahl, 2021. "Airport capacity extension, fleet investment, and optimal aircraft scheduling in a multilevel market model: quantifying the costs of imperfect markets," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(2), pages 367-408, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:mathme:v:92:y:2020:i:3:d:10.1007_s00186-020-00721-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.