Article ID: | iaor20102821 |
Volume: | 36 |
Issue: | 2 |
Start Page Number: | 168 |
End Page Number: | 172 |
Publication Date: | Mar 2008 |
Journal: | Operations Research Letters |
Authors: | Laye Jacques, Laye Maximilien |
We add capacity constraints to a multi-market Cournot model in which asymmetric firms have linear demand functions. We show that the problem is equivalent to maximizing a concave objective function over a convex region which ensures the existence of a unique capacity constrained Cournot–Nash equilibrium.