A Hypergraph Evolutionary Game Theoretic Cournot Model for Networked Markets
25 Pages Posted: 22 Jan 2025
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
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