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Differential Games of Cournot Oligopoly with Consideration of Pollution, Network Structure, and Continuous Updating

Author

Listed:
  • Guennady Ougolnitsky

    (Institute of Mathematics, Mechanics and Computer Sciences, Southern Federal University, 344090 Rostov-on-Don, Russia)

  • Alexey Korolev

    (Saint Petersburg State Electrotechnical Institute, 197022 St. Petersburg, Russia)

Abstract

We have built and investigated analytically and numerically a differential game model of Cournot oligopoly with consideration of pollution, network structure, and continuous updating. Up to this time, games with network structure and continuous updating were considered separately. We analyzed time consistency for a cooperative solution of the game. For a specific example, we built a non-empty subgame perfect subcore. We considered stochastic versions of the proposed model and received results similar to the deterministic case.

Suggested Citation

  • Guennady Ougolnitsky & Alexey Korolev, 2025. "Differential Games of Cournot Oligopoly with Consideration of Pollution, Network Structure, and Continuous Updating," Games, MDPI, vol. 16(1), pages 1-22, February.
    • Handle: RePEc:gam:jgames:v:16:y:2025:i:1:p:9-:d:1587269
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    References listed on IDEAS

    as
    1. Kawaguchi, Kazuhito & Morimoto, Hiroaki, 2007. "Long-run average welfare in a pollution accumulation model," Journal of Economic Dynamics and Control, Elsevier, vol. 31(2), pages 703-720, February.
    2. Maskin, Eric & Tirole, Jean, 1987. "A theory of dynamic oligopoly, III : Cournot competition," European Economic Review, Elsevier, vol. 31(4), pages 947-968, June.
    3. Petrosjan, Leon & Zaccour, Georges, 2003. "Time-consistent Shapley value allocation of pollution cost reduction," Journal of Economic Dynamics and Control, Elsevier, vol. 27(3), pages 381-398, January.
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