The analysis of the Cournot oligopoly model considering the subjective motive in the strategy selection

Abstract

In the behavior analysis of a company we propose a method considering subjectivity of each company.We introduce some motives for strategy selection by a company and construct his subjective game by using his motive distribution. It is desirable that each company follows his Nash equilibrium strategy for his own subjective game.We apply this method to the Cournot oligopoly market model and obtain the subjective Nash equilibrium strategy for each player. Moreover by some numerical examples we examine the influence of the motive distribution on the equilibrium strategy.