On a generalized Cournot oligopolistic competition game

Simai He, Xiaoguo Wang, Shuzhong Zhang

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1 Scopus citations


We consider a model whereby players compete for a set of shared resources to produce and sell substitute products in the same market, which can be viewed as a generalization of the classical Cournot oligopolistic competition model, or, from a different angle, the Wardrop type routing model. In particular, we suppose that there are K players, who compete for the usage of resources as well as the sales of the end-products. Moreover, the unit costs of the shared resources and the selling prices of the products are assumed to be affine linear functions in the consumption/production quantities. We show that the price of anarchy in this case is lower bounded by 1/K, and this bound is essentially tight, which manifests the harsh nature of the competitive market for the producers.

Original languageEnglish (US)
Pages (from-to)1335-1345
Number of pages11
JournalJournal of Global Optimization
Issue number4
StatePublished - Aug 2013

Bibliographical note

Funding Information:
Acknowledgments Simai He received research support from City University of Hong Kong 7200207 and RGC Earmarked Grant CityU 143711; Xiaoguo Wang and Shuzhong Zhang received support from RGC Earmarked Grant CUHK419409.


  • Cournot oligopoly competition
  • Nash equilibrium
  • Price of anarchy


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