Technical Note—Global Robust Stability in a General Price and Assortment Competition Model
研究了一个寡头垄断下各企业提供多种产品的价格竞争模型，证明了一种特殊均衡具有全局鲁棒稳定性，即从任何起点出发，市场都会收敛到该均衡。
We analyze a general but parsimonious price competition model for an oligopoly in which each firm offers any number of products. The demand volumes are general piecewise affine functions of the full price vector, generated as the “regular” extension of a base set of affine functions. The model specifies a product assortment, along with their prices and demand volumes, in contrast to most commonly used demand models, such as the multinomial logit model or any of its variants. We show that a special equilibrium in this model has global robust stability. This means that, from any starting point, the market converges to this equilibrium when firms use a particular response mapping to dynamically adjust their own prices in response to their competitors’ prices. The mapping requires each firm to only know the demand function and cost structure for its own products (but not for other firms’ products).