Two-Player Location Game in a Closed-Loop Market with Quantity Competition
Joint Authors
Zhao, Zhenjiang
Chen, Xiaofeng
Song, Qiankun
Source
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-08-25
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
This paper considers the two-player location game in a closed-loop market with quantity competition.
Based on the Cournot and Hotelling models, a circle model is established for a closed-loop market in which two players (firms) play a location game under quantity competition.
Using a two-stage (location-then-quantity) pattern and backward induction method, the existence of subgame-perfect Nash equilibria is proved for the location game in the circle model with a minimum distance transportation cost function.
In addition, sales strategies are proposed for the two players for every local market on the circle when the players are in the equilibrium positions.
Finally, an algorithm for simulating the competitive dynamics of the closed-loop market is designed, and two numerical simulations are provided to substantiate the effectiveness of the obtained results.
American Psychological Association (APA)
Chen, Xiaofeng& Song, Qiankun& Zhao, Zhenjiang. 2020. Two-Player Location Game in a Closed-Loop Market with Quantity Competition. Complexity،Vol. 2020, no. 2020, pp.1-12.
https://search.emarefa.net/detail/BIM-1141887
Modern Language Association (MLA)
Chen, Xiaofeng…[et al.]. Two-Player Location Game in a Closed-Loop Market with Quantity Competition. Complexity No. 2020 (2020), pp.1-12.
https://search.emarefa.net/detail/BIM-1141887
American Medical Association (AMA)
Chen, Xiaofeng& Song, Qiankun& Zhao, Zhenjiang. Two-Player Location Game in a Closed-Loop Market with Quantity Competition. Complexity. 2020. Vol. 2020, no. 2020, pp.1-12.
https://search.emarefa.net/detail/BIM-1141887
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1141887