Demand And Equilibrium In A Network Of Oligopolistic Markets

Abstract

In this paper, we consider an oligopolistic model of electricity market with conjectures concerning the price variations depending upon the agents’ production increase or increase. By introducing the notion of an exterior equilibrium and a special type of a producer’s cost function, we establish the existence and uniqueness of the exterior (conjectured) equilibrium. Then we introduce the notion of an interior stable equilibrium and analyze the behavior of groups of consumers with different consumption abilities. The proposed techniques allow us to make a qualitative description of dependence of the market price upon the active demand component.