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Multi-market Oligopoly of Equal Capacity

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  • Ruda Zhang
  • Roger Ghanem

Abstract

We consider a variant of Cournot competition, where multiple firms allocate the same amount of resource across multiple markets. We prove that the game has a unique pure-strategy Nash equilibrium (NE), which is symmetric and is characterized by the maximal point of a "potential function". The NE is globally asymptotically stable under the gradient adjustment process, and is not socially optimal in general. An application is in transportation, where drivers allocate time over a street network.

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  • Ruda Zhang & Roger Ghanem, 2020. "Multi-market Oligopoly of Equal Capacity," Papers 2012.06742, arXiv.org.
    • Handle: RePEc:arx:papers:2012.06742
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    References listed on IDEAS

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    Cited by:

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