Abstract

More than a hundred years ago, the first models of oligopolies were described. Modeling of oligopolies continues to this day in many modern papers. The main approach meets the concept of the Nash equilibrium and is actively used in modeling the behavior of players in a competitive market. The exact opposite of such “selfish” equilibrium is the “altruistic” concept of the Berge equilibrium. At the moment, many works are devoted to a Berge equilibrium. However, all of these items are limited to purely theoretical issues, or, in general, to psychological applications. Papers devoted to the study of Berge equilibrium in economic problems were not seen until now. In this paper, the Berge equilibrium is considered in the Cournot oligopoly, and its relationship to the Nash equilibrium is studied. Cases are revealed in which players gain more profit by following the concept of the Berge equilibrium, then by using strategies dictated by the Nash equilibrium.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.