The robustness of a Nash equilibrium simulation model: Game-theoretic approach using variable metric projection method

Eitaro Aiyoshi, Atsushi Maki, Takashi Okamoto

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This paper proposes a Nash equilibrium model that applies continuous time replicator dynamics to the analysis of oligopoly markets. The robustness of the proposed simple Nash equilibrium model under the simultaneous constraints of allocation of product and market share using a simulation method to derive an optimal solution for production decisions by rival firms in oligopoly markets is tested by changing profit and cost function parameters, as well as the initial production values and market shares of the firms examined in this study. The effects of differences in conjectural variation and initial allocation of market share on the convergent values are considered, particularly in the case of corner solutions. This approach facilitates the understanding of the robustness of attaining equilibrium in an oligopoly market.

Original languageEnglish
Pages (from-to)1518-1526
Number of pages9
JournalMathematics and Computers in Simulation
Volume81
Issue number7
DOIs
Publication statusPublished - 2011 Mar

Fingerprint

Variable Metric Methods
Metric Projection
Equilibrium Model
Projection Method
Nash Equilibrium
Simulation Model
Game
Robustness
Oligopoly
Cost functions
Profitability
Replicator Dynamics
Simulation Methods
Profit
Cost Function
Market
Continuous Time
Optimal Solution

Keywords

  • Nash equilibrium
  • Oligopoly
  • Replicator dynamics

ASJC Scopus subject areas

  • Modelling and Simulation
  • Numerical Analysis
  • Applied Mathematics
  • Theoretical Computer Science
  • Computer Science(all)

Cite this

The robustness of a Nash equilibrium simulation model : Game-theoretic approach using variable metric projection method. / Aiyoshi, Eitaro; Maki, Atsushi; Okamoto, Takashi.

In: Mathematics and Computers in Simulation, Vol. 81, No. 7, 03.2011, p. 1518-1526.

Research output: Contribution to journalArticle

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