Hurwicz’s criterion and the equilibria of duopoly models

Zapata, A.; Caraballo, M. Ángeles; Mármol, Amparo M.

doi:10.1007/s10100-017-0517-4

Cited by 7 publications

(4 citation statements)

References 13 publications

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“…(ii) Demand may change over time. In the case, it is possible to reach a situation in which there is uncertainty about market equilibrium-as in Zapata et al (2019).…”

Section: Introductionmentioning

confidence: 99%

Existence, Uniqueness and Stability of Market Equilibrium in Oligopoly Markets

Dzhabarova

Kabaivanov

Ruseva

et al. 2020

Administrative Sciences

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In this paper we build a pragmatic model on competition in oligopoly markets. To achieve this goal, we use an approach based on studying the response functions of each market participant, thus making it possible to address both Cournot and Bertrand industrial structures with a unified formal method. In contrast to the restrictive theoretical constructs of duopoly equilibrium, our study is able to account for real-world limitations like minimal sustainable production levels and exclusive access to certain resources. We prove and demonstrate that by using carefully constructed response functions it is possible to build and calibrate a model that reflects different competitive strategies used in extremely concentrated markets. The response functions approach makes it also possible to take into consideration different barriers to entry. By fitting to the response functions rather than the profit maximization of the payoff functions problem we alter the classical optimization problem to a problem of coupled fixed points, which has the benefit that considering corner optimum, corner equilibria and convexity condition of the payoff function can be skipped.

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“…(ii) Demand may change over time. In the case, it is possible to reach a situation in which there is uncertainty about market equilibrium-as in Zapata et al (2019).…”

Section: Introductionmentioning

confidence: 99%

Existence, Uniqueness and Stability of Market Equilibrium in Oligopoly Markets

Dzhabarova

Kabaivanov

Ruseva

et al. 2020

Administrative Sciences

View full text Add to dashboard Cite

show abstract

“…Thus, this method takes into account the pessimistic criterion, but is more focused on the average position of choice. The authors also took into account the mathematical modifications of this method published in the works of leading experts in the analysis of the sensitivity of decisions in the form of a decision tree [20], in the selection of investment projects [21] and in the analysis of competition [22].…”

Section: Methodsmentioning

confidence: 99%

Matrix approach to managing of rationing in the public procurement

2021

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The article analyzes the potential for improving rationing in the public procurement system to increase their transparency and efficiency. An original method of procurement rationing based on a matrix approach to management is proposed. The methodology includes a combination of mathematical methods, scenario and predictive methods, which allows us to take into account the alternative solutions in procurement management. The fundamental principle of applying the matrix approach in procurement is not to optimize the procedures within a specific order, not to save budget funds as such, but to increase the efficiency of procurement planning in order to implement the entire set of projects, taking into account the factors of time, the need for procurement for the customer and public interests.

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“…(ii) Demand may change over time. In case case it is possible to reach a situation in which there is uncertainty about market equilibrium -as in [23].…”

Section: Oligopoly (Duopoly) Marketsmentioning

confidence: 99%

Application of Coupled Fixed (or Best Proximity) Points in Market Equilibrium in Oligopoly Markets

Dzhabarova,

Kabaivanov,

Ruseva

et al. 2020

Preprint

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We present a possible kind of generalization of the notion of ordered pairs of cyclic maps and coupled fixed points and its application in modelling of equilibrium in oligopoly markets. We have obtained sufficient conditions for the existence and uniqueness of fixed (or best proximity) points in complete metric spaces (uniformly convex Banach spaces). We get an error estimates of the fixed (or best proximity), provided that we have used sequences of successive iterations. We illustrate one possible application of the results by building a pragmatic model on competition in oligopoly markets. To achieve this goal, we use an approach based on studying the response functions of each market participant, thus making it possible to address both Cournot and Bertrand industrial structures with unified formal method. In contrast to the restrictive theoretical constructs of duopoly equilibrium, our study is able to account for real-world limitations like minimal sustainable production levels and exclusive access to certain resources. We prove and demonstrate that by using carefully constructed response functions it is possible to build and calibrate a model that reflects different competitive strategies used in extremely concentrated markets. The response functions approach makes it also possible to take into consideration different barriers to entry. By fitting to the response functions rather than the profit maximization of the payoff functions problem we alter the classical optimization problem to a problem of coupled fixed points, which has the benefit that considering corner optimum, corner equilibria and convexity condition of the payoff function can be skipped.

show abstract

Hurwicz’s criterion and the equilibria of duopoly models

Cited by 7 publications

References 13 publications

Existence, Uniqueness and Stability of Market Equilibrium in Oligopoly Markets

Existence, Uniqueness and Stability of Market Equilibrium in Oligopoly Markets

Matrix approach to managing of rationing in the public procurement

Application of Coupled Fixed (or Best Proximity) Points in Market Equilibrium in Oligopoly Markets

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