Abstract
ABSTRACT. We formulate the spatial Stackelberg‐Nash‐Cournot competitive network equilibrium problem as a variational inequality constrained mathematical program. Our model differs from previous models of Stackelberg oligopolistic competition in that it employs explicit shipping decision variables and a general network topology. That is, the production and distribution decisions of the Stackelberg firm are determined simultaneously over a discrete network. We explore the existence of solutions to the proposed model, and we also numerically test a sensitivity analysis based algorithm. In particular, we illustrate how sensitivity analysis results can be used to generate the Cournot reaction necessary to solve the Stackelberg problem.
Original language | English (US) |
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Pages (from-to) | 435-454 |
Number of pages | 20 |
Journal | Journal of Regional Science |
Volume | 31 |
Issue number | 4 |
DOIs | |
State | Published - Nov 1991 |
All Science Journal Classification (ASJC) codes
- Development
- Environmental Science (miscellaneous)