| Article ID: | iaor19931461 |
| Country: | United States |
| Volume: | 39 |
| Issue: | 5 |
| Start Page Number: | 739 |
| End Page Number: | 748 |
| Publication Date: | Sep 1991 |
| Journal: | Operations Research |
| Authors: | Kolstad Charles D., Mathiesen Lars |
| Keywords: | economics |
This paper examines convergence criteria of an algorithm for the computation of Cournot-Nash economic equilibria. The method is based on formulating the equilibrium problem as that of finding a solution to a nonlinear complementarity problem, solved by sequential linearization and Lemke’s algorithm. Conditions for local and global convergence are developed and the technique is applied to homogeneous, segmented and differentiated product markets.