Exploring General Equilibrium Points for Cournot Model

Abstract

In Cournot model, when there are many competitions, the competitive equilibrium becomes chaotic. It is extremely difficult to derive the general equilibrium points. There is no previous research to explore a further problem with the general equilibrium points of n-contenders in Cournot model. In this paper, a general equilibrium Cournot game is proposed based on an inverse demand function. A market spatial structure model is built. Intermediate value theorem, as a realistic method, is introduced to handle a general competitive equilibrium in Cournot model. The number and stability in general equilibrium points are detected by means of celestial motion theory and spatial agglomeration competition model. The existence of general equilibrium points and the stability of Cournot equilibrium points, which are new and future complement of previously known results. Numerical simulations are given to support the research results.