Conjectural variations equilibrium in a mixed duopoly
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In: European Journal of Operational Research , Vol. 192, No. 3, 01.02.2009, p. 717-729.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Conjectural variations equilibrium in a mixed duopoly
AU - Kalashnikov, Vyacheslav
AU - Kemfert, Claudia
AU - Kalashnikov, Vitaly
PY - 2009/2/1
Y1 - 2009/2/1
N2 - We study a mixed duopoly model, in which a state-owned (public) firm maximizing domestic social surplus and a private (foreign) firm compete. Under general enough assumptions, we first justify the concept of conjectural variations equilibrium (CVE) applied to the model by demonstrating concavity of the expected profit function of each agent. Next we establish existence and uniqueness results for the conjectural variations equilibrium in the described duopoly. A particular case of a CVE with constant influence (conjecture) coefficients is also examined.
AB - We study a mixed duopoly model, in which a state-owned (public) firm maximizing domestic social surplus and a private (foreign) firm compete. Under general enough assumptions, we first justify the concept of conjectural variations equilibrium (CVE) applied to the model by demonstrating concavity of the expected profit function of each agent. Next we establish existence and uniqueness results for the conjectural variations equilibrium in the described duopoly. A particular case of a CVE with constant influence (conjecture) coefficients is also examined.
KW - Conjectural variations equilibrium
KW - Constant influence coefficients
KW - Mixed duopoly
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=51649109643&partnerID=8YFLogxK
U2 - 10.1016/j.ejor.2007.09.020
DO - 10.1016/j.ejor.2007.09.020
M3 - Journal articles
AN - SCOPUS:51649109643
VL - 192
SP - 717
EP - 729
JO - European Journal of Operational Research
JF - European Journal of Operational Research
SN - 0377-2217
IS - 3
ER -