A Hypergraph Evolutionary Game Theoretic Cournot Model for Networked Markets

25 Pages Posted: 22 Jan 2025

See all articles by Ioannis Papastaikoudis

Ioannis Papastaikoudis

University of Cambridge

Jonathan Newton

Kyoto University - Institute of Economic Research

Jeremy Watson

University of Canterbury

Ioannis Lestas

University of Cambridge

Date Written: January 09, 2025

Abstract

We propose a novel hypergraph information structure for a Cournot network competition model and we formulate it as a distributed optimization problem which we solve with continuous-time evolutionary game theoretic techniques. In the resulting dynamical system we also incorporate a hypergraph communication matrix for a more direct and less computationally costly information description. The proposed hypergraph communication structure is more efficient and compact in terms of information transmission than a bipartite graph and it also provides acceleration to the convergence of the respective dynamical system. The fast attainment of the equilibrium point which represents the market clearing point has major economic benefits like, less price fluctuations and more efficient resource allocation for various types of markets operating in continuous time.

Keywords: Cournot Network Model, Evolutionary Game Theory, Hypergraphs

JEL Classification: C61, C62, C73, D4, D85

Suggested Citation

Papastaikoudis, Ioannis and Newton, Jonathan and Watson, Jeremy and Lestas, Ioannis, A Hypergraph Evolutionary Game Theoretic Cournot Model for Networked Markets (January 09, 2025). Available at SSRN: https://ssrn.com/abstract=5089825 or http://dx.doi.org/10.2139/ssrn.5089825

Ioannis Papastaikoudis (Contact Author)

University of Cambridge ( email )

Judge Business School (CERF)
Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Jonathan Newton

Kyoto University - Institute of Economic Research ( email )

Yoshida-Honmachi
Sakyo-ku
Kyoto 606-8501
JAPAN

Jeremy Watson

University of Canterbury ( email )

Ioannis Lestas

University of Cambridge ( email )

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