A Dynamic Spatial Cournot-Nash Equilibrium Model and an Algorithm.

The objective of this paper is to develop a quantitative methodology for the study of dynamic oligopolistic competition among spatially separated firms serving spatially separated markets. The problem is modeled as a N-person nonzero-sum differential game in the open-loop and closed-loop strategy spaces. Optimality conditions are derived and provided with economic interpretations. Iterative algorithms and numerical results are presented for the open-loop and closed-loop models. Citation Copyright 1997 by Kluwer Academic Publishers.