Aspatial Stackelberg Nash Cournot Equilibria
In this chapter, we review a Stackelberg-Nash-Cournot equilibrium problem applied to one market. This will help set a foundation for the review of multi-market spatial equilibria later in this book. Further, by focusing on a one market, non-locational problem, we can develop insights into the properties of market equilibria problems such as the curvature of the revenue function in a Stackelberg-Nash-Cournot model and issues regarding the uniqueness of solutions to this problem. In a multi-market model with locational decisions included, these properties become more difficult to illustrate. Additionally, the one market model serves to illustrate how market equilibria problems are amenable to formulation and solution by nonlinear complementarity techniques as well as variational inequalities. Finally, this chapter provides an important first glimpse of the role which sensitivity analysis can play in market equilibria models.
KeywordsEter Nash Librium Verse
Unable to display preview. Download preview PDF.