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Game-Theoretic Models of Competition Between Producers with Random Product Yields Under Duopoly of Differentiated Goods

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Abstract

Models of quantitative competition under duopoly of differentiated goods are described in which the controlled variable (product yield) of a producer is considered to be a random quantity. The class of distributions of random product yields is singled out that guarantees the existence of solutions for noncooperative games. Formulas for finding a “corrected” Nash equilibrium are obtained in explicit form for a duopoly with a random controlled variable of one and both producers. A method for estimating the risk level for a producer is proposed.

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Authors and Affiliations

  1. Ivan Franco National University of Lviv, Lviv, Ukraine

    K. V. Kosarevych & Ya. I. Yelejko

Authors
  1. K. V. Kosarevych
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  2. Ya. I. Yelejko
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Correspondence to K. V. Kosarevych.

Additional information

Translated from Kibernetika i Sistemnyi Analiz, No. 4, pp. 127–136, July–August, 2015

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Kosarevych, K.V., Yelejko, Y.I. Game-Theoretic Models of Competition Between Producers with Random Product Yields Under Duopoly of Differentiated Goods. Cybern Syst Anal 51, 609–618 (2015). https://doi.org/10.1007/s10559-015-9752-7

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  • DOI: https://doi.org/10.1007/s10559-015-9752-7

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