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Cournot equilibria in a model of a two-hub homogeneous commodity market

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The article considers existence and uniqueness of Cournot equilibria in a model of a two-hub homogeneous commodity market with affine demand functions. Explicit boundaries for the existence regions of Cournot equilibria of all possible types are derived in the case when identical firms with constant marginal costs exist in each hub (i.e., symmetrical oligopoly). Ignoring commodity losses during transfers between hubs, we reduce the number of model input parameters to two and generate a phase-plane description of the coexistence region of two Cournot equilibria and the region where no equilibria exist.

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References

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Authors and Affiliations

  1. Faculty of Computational Mathematics and Cybernetics, Moscow State University, Moscow, Russia

    A. A. Vasin & A. S. Shamanaev

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  1. A. A. Vasin
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  2. A. S. Shamanaev
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Correspondence to A. S. Shamanaev.

Additional information

Translated from Prikladnaya Matematika i Informatika, No. 32, pp. 46–66, 2009.

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Vasin, A.A., Shamanaev, A.S. Cournot equilibria in a model of a two-hub homogeneous commodity market. Comput Math Model 21, 51–69 (2010). https://doi.org/10.1007/s10598-010-9054-x

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  • DOI: https://doi.org/10.1007/s10598-010-9054-x

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