Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
4632843 | Applied Mathematics and Computation | 2009 | 12 Pages |
Abstract
The effects of government subsidies are examined in a spatial duopoly with a conventional and an electronic retailer. The Nash equilibrium is first determined and then the optimal cost subsidy rates are computed that maximize social welfare. The stability of the equilibrium is also investigated and it is shown that in the case of delayed information there is the possibility of cyclic behavior.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Ferenc Szidarovszky, Akio Matsumoto,