Competition and Cooperation in the Market Goods With Saturated Demand

Abstract

The article considers options for achieving market equilibrium in the oligopolistic market of goods with saturated demand. Cooperation and competition of oligopolistic producers are the most important factors influencing the characteristics of the market in question. The article developed a game theoretic model of such a market, and with its help various options for interaction between manufacturers were investigated. It has been established that the main parameters affecting the position of the manufacturer on the market are its production capabilities and the level of technologies used. It has been shown that non-cooperative equilibrium in such a market is possible only if strict antitrust measures are observed. Characteristics of such equilibrium were found. Various options for cooperative behavior of manufacturers have been investigated. With the help of the model proposed in the work, it is shown that on the studied market from a game theoretical point of view it is possible to appear equilibrium states of different nature: equilibrium by Stackelberg and Nash, as well as strong equilibrium. The article identifies the states under which these conditions arise in the market, and identifies the characteristics of these equilibrium states. The possibility of achieving market equilibrium based on threats has been studied separately. It has been established that the ratio of production capabilities of oligopolists who are market participants plays a decisive role in achieving a stable market state.