This article is cited in 3 papers

Control in Social and Economic Systems

Modelling network interactions on competitive markets

G. Algazin, D. Algazina

Altai State University

Abstract: We suggest a game-theoretical model of a multi-agent network, whose purpose is promotion of a homogeneous product (or a service) on a competitive market. We study efficiency of networks employing Cournot and Stackelberg equilibria for the basic applied model of “franchisor-franchisee-market” and that of “producer-mediator-market” under linear costs and inverse demands (which is typical for models of oligopoly), and obtain close-form solutions. The novel feature of the model is the presence of a principal who is responsible for network interactions management and network efficiency improvement.

Keywords: networks’ typology, game-theoretical model, network equilibrium, Cournot, Stackelberg, network interactions management, network efficiency, franchising, trade mediation.

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