IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v36y1988i5p682-702.html
   My bibliography  Save this article

A Mathematical Programming Approach to a Nash-Cournot Equilibrium Analysis for a Two-Stage Network of Oligopolies

Author

Listed:
  • Hanif D. Sherali

    (Virginia Polytechnic Institute and State University, Blacksburg, Virginia)

  • Joanna M. Leleno

    (Central School of Planning and Statistics, Warsaw, Poland)

Abstract

This paper deals with the existence, characterization and computation of equilibrium solutions arising from related mathematical programming problems associated with a particular market structure. The generic structure analyzed herein represents a two-stage production process in which a set of some firms produces a semifinished product that serves as an input to another set of firms which converts this to a final good. In addition, there exists a third set of vertically integrated firms. These firms perform the operations jointly performed by the other two sets of firms in producing the final product. On the demand side, an econometrically derived demand curve is specified for the final product. The aim of this paper is to characterize the nature of the equilibrium solutions for such problems under various market behavioral structures, derive sufficient conditions under which one can claim the existence of these equilibrium solutions, and prescribe methods for computing equilibrium solutions. The analysis provides a machinery for considering the effects of mergers and integrations on a firms' profits and on industry outputs and prices, thereby suggesting incentives, or otherwise, to merge or integrate.

Suggested Citation

  • Hanif D. Sherali & Joanna M. Leleno, 1988. "A Mathematical Programming Approach to a Nash-Cournot Equilibrium Analysis for a Two-Stage Network of Oligopolies," Operations Research, INFORMS, vol. 36(5), pages 682-702, October.
    • Handle: RePEc:inm:oropre:v:36:y:1988:i:5:p:682-702
    DOI: 10.1287/opre.36.5.682
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.36.5.682
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.36.5.682?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jan-Arild Audestad & Alexei Gaivoronski & Adrian Werner, 2006. "Extending the stochastic programming framework for the modeling of several decision makers: pricing and competition in the telecommunication sector," Annals of Operations Research, Springer, vol. 142(1), pages 19-39, February.
    2. Eleni Dalla & Christos Karpetis & Erotokritos Varelas, 2014. "Monetary Policy Implications on Banking Conduct and Bank Clients’ Behavior," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(4), pages 427-440, December.
    3. Haruo Horaguchi, 2008. "Economics of Reciprocal Networks: Collaboration in Knowledge and Emergence of Industrial Clusters," Computational Economics, Springer;Society for Computational Economics, vol. 31(4), pages 307-339, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:36:y:1988:i:5:p:682-702. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.