An imperfect competition on scale-free networks

Tomohiko Konno

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

We study an imperfect quantity competition on networks that represent rivalry relationships among firms. We show that the more heterogeneous the underlying network is, the more the output and the price are. The output and the price on scale-free networks are counter-intuitively the same as those in the monopoly regardless of the number of rival firms. We also show that any inverse demand function represented by a network has the corresponding utility function, which justifies the inverse demand function.

Original languageEnglish
Pages (from-to)5453-5460
Number of pages8
JournalPhysica A: Statistical Mechanics and its Applications
Volume392
Issue number21
DOIs
Publication statusPublished - 2013 Nov 1
Externally publishedYes

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Keywords

  • Imperfect competition
  • Monopoly solution
  • Network heterogeneity
  • Scale-free networks

ASJC Scopus subject areas

  • Condensed Matter Physics
  • Statistics and Probability

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