Local stability of the Cournot solution with increasing heterogeneous competitors

Fabio Tramontana; A. A. Elsadany; Baogui Xin; H. N. Agiza

doi:10.1016/j.nonrwa.2015.05.005

Local stability of the Cournot solution with increasing heterogeneous competitors

Fabio Tramontana
, A. A. Elsadany
, Baogui Xin
, H. N. Agiza

Research output: Contribution to journal › Article › peer-review

57 Scopus citations

Abstract

Abstract In this paper we try to solve a paradox related to the results of Theocharis (1960). When the number of competitors increases the Cournot-Nash equilibrium loses stability. We relax the assumption about homogeneity in the decision mechanism and show that if we admit heterogeneity than by increasing the number of competitors the stability region on the parameters' space may enlarge instead of shrinking.

Original language	English
Article number	2320
Pages (from-to)	150-160
Number of pages	11
Journal	Nonlinear Analysis: Real World Applications
Volume	26
DOIs	https://doi.org/10.1016/j.nonrwa.2015.05.005
State	Published - 11 Jun 2015
Externally published	Yes

Keywords

Cournot oligopoly
Heterogeneous firms
Isoelastic demand function
Nash equilibrium

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10.1016/j.nonrwa.2015.05.005

Cite this

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title = "Local stability of the Cournot solution with increasing heterogeneous competitors",

abstract = "Abstract In this paper we try to solve a paradox related to the results of Theocharis (1960). When the number of competitors increases the Cournot-Nash equilibrium loses stability. We relax the assumption about homogeneity in the decision mechanism and show that if we admit heterogeneity than by increasing the number of competitors the stability region on the parameters' space may enlarge instead of shrinking.",

keywords = "Cournot oligopoly, Heterogeneous firms, Isoelastic demand function, Nash equilibrium",

author = "Fabio Tramontana and Elsadany, \{A. A.\} and Baogui Xin and Agiza, \{H. N.\}",

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AU - Tramontana, Fabio

AU - Elsadany, A. A.

AU - Xin, Baogui

AU - Agiza, H. N.

PY - 2015/6/11

Y1 - 2015/6/11

N2 - Abstract In this paper we try to solve a paradox related to the results of Theocharis (1960). When the number of competitors increases the Cournot-Nash equilibrium loses stability. We relax the assumption about homogeneity in the decision mechanism and show that if we admit heterogeneity than by increasing the number of competitors the stability region on the parameters' space may enlarge instead of shrinking.

AB - Abstract In this paper we try to solve a paradox related to the results of Theocharis (1960). When the number of competitors increases the Cournot-Nash equilibrium loses stability. We relax the assumption about homogeneity in the decision mechanism and show that if we admit heterogeneity than by increasing the number of competitors the stability region on the parameters' space may enlarge instead of shrinking.

KW - Cournot oligopoly

KW - Heterogeneous firms

KW - Isoelastic demand function

KW - Nash equilibrium

UR - https://www.scopus.com/pages/publications/84930940465

U2 - 10.1016/j.nonrwa.2015.05.005

DO - 10.1016/j.nonrwa.2015.05.005

M3 - Article

AN - SCOPUS:84930940465

SN - 1468-1218

VL - 26

SP - 150

EP - 160

JO - Nonlinear Analysis: Real World Applications

JF - Nonlinear Analysis: Real World Applications

M1 - 2320

ER -

Local stability of the Cournot solution with increasing heterogeneous competitors

Abstract

Keywords

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