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On Cournot-Nash-Walras Equilibria and Their Computation

Set-Valued and Variational Analysis volume 24, pages 387–402 (2016)Cite this article

Abstract

This paper concerns a model of Cournot-Nash-Walras (CNW) equilibrium where the Cournot-Nash concept is used to capture equilibrium of an oligopolistic market with non-cooperative players/firms who share a certain amount of a so-called rare resource needed for their production, and the Walras equilibrium determines the price of that rare resource. We prove the existence of CNW equilibria under reasonable conditions and examine their local stability with respect to small perturbations of problem data. In this way we show the uniqueness of CNW equilibria under mild additional requirements. Finally, we suggest some efficient numerical approaches and compute several instances of an illustrative test example.

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Authors and Affiliations

  1. Institute of Information Theory and Automation, Czech Academy of Sciences, Prague, Czech Republic

    Jiří V. Outrata & Michal Červinka

  2. Centre for Informatics and Applied Optimization, Federation University of Australia, Ballarat, Australia

    Jiří V. Outrata

  3. Department of Computer Sciences, University of Wisconsin-Madison, Madison, WI, 53706, USA

    Michael C. Ferris

  4. Faculty of Social Sciences, Charles University in Prague, Prague, Czech Republic

    Michal Červinka

  5. Faculty of Mathematics and Physics, Charles University in Prague, Prague, Czech Republic

    Michal Outrata

Authors
  1. Jiří V. Outrata
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  2. Michael C. Ferris
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  3. Michal Červinka
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  4. Michal Outrata
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Corresponding author

Correspondence to Jiří V. Outrata.

Additional information

This work was partially supported by the Grant Agency of the Czech Republic under Grant P402/12/1309 and 15-00735S, by the Grant Agency of the Charles University by Grant SFG 2567, by the Australian Research Council under grant DP-110102011 and in part by a grant from the Department of Energy and funding from the USDA.

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Outrata, J.V., Ferris, M.C., Červinka, M. et al. On Cournot-Nash-Walras Equilibria and Their Computation. Set-Valued Var. Anal 24, 387–402 (2016). https://doi.org/10.1007/s11228-016-0377-4

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  • DOI: https://doi.org/10.1007/s11228-016-0377-4

Keywords

  • Cournot-Nash-Walras equilibrium
  • Existence
  • Stationarity conditions
  • Stability
  • MOPEC

Mathematics Subject Classification (2010)

  • 90C33
  • 91B52
  • 49J40
  • 90C31