Spatial Cournot competition in a linear–circular market

Guo, Wen‐Chung; Lai, Fu-Chuan

doi:10.1007/s00168-015-0687-8

Cited by 4 publications

(4 citation statements)

References 18 publications

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“…Proposition 2. In the location-price game in the dual-circle market, the two players choose the price policy of (23) and (24) based on their positions (x 1 , x 2 ) located in region ABCD. If the proportion factor θ � (ρ L /ρ R ) ≥ θ 0 , there exists a location equilibrium (x * 1 , x * 2 ), which can be determined by…”

Section: Location-price Gamementioning

confidence: 99%

“…In [23], the problems of existence and nonexistence of an equilibrium were studied for a location-price game in the circle market. A linear and circular model with spatial Cournot competition was explored in [24], where the dependence between location equilibrium and demand density was examined. In [25], the authors demonstrated that the unique equilibrium location is in the equidistant pattern for the multiple players in a circular market.…”

Section: Introductionmentioning

confidence: 99%

“…, x 2 + h) and p 2 � p * 2 (x 1 , x 2 + h) according to(23) and(24) (23). Compute Newπ 21 � π 2 (p 1 , p 2 , x 1 , x 2 + h) according to(30).…”

mentioning

confidence: 99%

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Location-Price Game in a Dual-Circle Market with Different Demand Levels

Chen

Song

Rong

et al. 2021

Mathematical Problems in Engineering

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This paper researches a location-price game in a dual-circle market system, where two circular markets are interconnected with different demand levels. Based on the Bertrand and Salop models, a double intersecting circle model is established for a dual-circle market system in which two players (firms) develop a spatial game under price competition. By a two-stage (location-then-price) structure and backward induction approach, the existence of price and location equilibrium outcomes is obtained for the location game. Furthermore, by Ferrari method for quartic equation, the location equilibrium is presented by algebraic expression, which directly reflects the relationship between the equilibrium position and the proportion factor of demand levels. Finally, an algorithm is designed to simulate the game process of two players in the dual-circle market and simulation results show that two players almost reach the equilibrium positions obtained by theory, wherever their initial positions are.

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Section: Location-price Gamementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Location-Price Game in a Dual-Circle Market with Different Demand Levels

Chen

Song

Rong

et al. 2021

Mathematical Problems in Engineering

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“…Furthermore, as for the circle market, the authors in [25] considered the problems of nonexistence and existence of an equilibrium for a location-price game. In [26], the authors explored a linear and circular model with spatial Cournot competition and examined the dependence between demand density and location equilibrium. For multiple participants in a circular market, the authors in [27] claimed that the unique equilibrium position is equidistantly distributed.…”

Section: Introductionmentioning

confidence: 99%

Two-Player Location-Price Game in a Spoke Market with Linear Transportation Cost

Chen

Song

2021

Discrete Dynamics in Nature and Society

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This paper investigates the location game of two players in a spoke market with linear transportation cost. A spoke market model has been proposed, which is inspired by the Hotelling model and develops two-player games in price competition. Using two-stage (position and price) patterns and the backward guidance method, the existence of price and location equilibrium results for the position games is proved.

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