Oligopoly dynamics with isoelastic demand: The joint effects of market saturation and strategic delegation
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F22%3A10250095" target="_blank" >RIV/61989100:27510/22:10250095 - isvavai.cz</a>
Result on the web
<a href="https://www.sciencedirect.com/science/article/pii/S0960077922002673" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0960077922002673</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.chaos.2022.112057" target="_blank" >10.1016/j.chaos.2022.112057</a>
Alternative languages
Result language
angličtina
Original language name
Oligopoly dynamics with isoelastic demand: The joint effects of market saturation and strategic delegation
Original language description
In the framework of a Cournot oligopoly game with isoelastic demand, we examine the simultaneous presence of both market saturation and strategic delegation. Although these two (realistic) aspects have already been considered in the literature each on its own, we aim at deepening their joint interactions when matched together in oligopolistic competition. In addition, we admit the possibility that delegation activities actuated by firms to weaken or even exclude competitors from the market may cease if undertaken by successful players, which thus regain their pure profit maximizing behavior. In this context, a limited market saturation level (positively) influences the effectiveness of delegation strategies and, at the same time, can sustain equilibrium configurations for the winning (monopolistic) firm even under the isoelastic market structure. Through local stability analysis, we show how the combination of strategic delegation with market saturation contributes to determine the equilibrium number of active players and the local asymptotic stability of the (economically relevant) equilibrium. Moreover, non-equilibrium dynamics reveal the presence of periodic cycles along which a firm is active while its competitors alternatively exits and enters the market. We show why these interesting scenarios are due to the joint interplay between strategic delegation and market saturation.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50200 - Economics and Business
Result continuities
Project
<a href="/en/project/GA20-16701S" target="_blank" >GA20-16701S: Hybrid Evolutionary Games and Economic Applications</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Chaos, Solitons & Fractals
ISSN
0960-0779
e-ISSN
1873-2887
Volume of the periodical
158
Issue of the periodical within the volume
May
Country of publishing house
US - UNITED STATES
Number of pages
10
Pages from-to
112057
UT code for WoS article
000800366500010
EID of the result in the Scopus database
2-s2.0-85128306298