Cooperation induction in two player bertand markets with linear demand
Cooperation induction in two player bertand markets with linear demand
复制标题
线性需求的两个参与者 bertand 市场中的合作诱导
DOI:
10.23919/acc.2017.7963663
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发表时间:
2017
期刊:
影响因子:
--
通讯作者:
S. Warnick
中科院分区:
文献类型:
--
作者:
W. Hurst;S. Warnick
We present a two player gradient play differential game in a producer market with quadratic payoff as a model of behavior in a competitive environment and show that the Nash equilibrium is not efficient. An algorithm is then presented which uses side payments to induce cooperation between firms, and rules for side payment strategies are shown. The stability of the new system at a reasonable equilibrium is proved, and it is shown that all participants are at least as well off as they would be at the non-cooperative equilibrium. Numerical examples show the existence of a reasonable equilibrium and that the basin of attraction of that equilibrium appears to cover all reasonable initial conditions.