Abstract
The paper aims at developing a new approach to modelling and analyzing the economics notion of oligopoly by mathematical tools. The authors previously [1],[2] presented a model in which the oligopoly agents presuppose a degree of their influence upon the market price, and they choose their output volumes taking those conjectures into account. However, the market itself and the production costs in those works were treated in somewhat traditional manner. This paper offers an attempt to modify the oligopoly model using both the network approach (cf. [3],[4], [5]) and the idea of production cost depending upon the demand for the raw materials. Such a modification should increase the model’s flexibility and its adaptation facilities.
This work was supported by the Russian Humanitarian Scientific Foundation (RHSF), project No. 96-02-02251
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Bulavsky, V.A., Kalashnikov, V.V. (1998). Network Model of a Single Product Market. In: Operations Research Proceedings 1997. Operations Research Proceedings, vol 1997. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58891-4_35
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DOI: https://doi.org/10.1007/978-3-642-58891-4_35
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