Evolutionary Variational Formulation for Oligopolistic Market Equilibrium Problems with Production Excesses
The paper is devoted to generalize a previous model of the dynamic oligopolistic market equilibrium problem allowing the presence of production excesses and assuming, in a more reasonable way that the total amounts of commodity shipments from a firm to all the demand markets be upper bounded. First, we give equilibrium conditions in terms of the well-known dynamic CournotNash equilibrium principle. Then we show that such conditions can be expressed in terms of Lagrange multipliers; namely, by means of an utility function, prove that both equilibrium conditions can be equivalently expressed by a variational inequality. The variational formulation allows us to provide existence theorems and qualitative properties for equilibrium solutions. At last, a numerical example illustrates the results obtained.
production excess dynamic oligopolistic market equilibrium problem dynamic cournotnash equilibrium evolutionary variational inequality lagrange variables assumptions