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Differentiated oligopolistic markets with concave cost functions via Ky Fan inequalities

Giancarlo Bigi(giancarlo.bigi***at***unipi.it)
Mauro Passacantando(mauro.passacantando***at***unipi.it)

Abstract: A model for Nash-Cournot oligopolistic markets with concave cost functions and a differentiated commodity is analysed. Equilibrium states are characterized through Ky Fan inequalities. Relying on the minimization of a suitable merit function, a general algorithmic scheme for solving them is provided. Two concrete algorithms are therefore designed that converge under suitable convexity and monotonicity assumptions. The results of preliminary numerical tests on randomly generated markets are also reported.

Keywords: Oligopoly, concave costs, Ky Fan inequalities, merit function, descent algorithm

Category 1: Complementarity and Variational Inequalities

Category 2: Applications -- OR and Management Sciences (Finance and Economics )

Citation: Technical Report 2363, Dipartimento di Informatica, UniversitÓ di Pisa

Download: [PDF]

Entry Submitted: 01/13/2017
Entry Accepted: 01/13/2017
Entry Last Modified: 01/13/2017

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