Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1142179 | Operations Research Letters | 2014 | 4 Pages |
Abstract
We study the optimal quantity strategies of the firm which owns many subsidiaries embedded in an economic network. A key feature of our model is that subsidiaries experience a negative local network effect. First, we show that there exists a unique Nash equilibrium in the game. Second, we characterize the equilibrium strategies by considering some specific network structures. Then, we identify how changes in the payoff parameters affect equilibrium play. Finally, we also analyze the strategy features of different models through two simple examples.
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Jin Xu, Jianghua Zhang, Jianliang Wu,