Control of Dynamic Oligopsonies with Production Factors [antikvár]

Cubo A Mathematical Journal Vol. 05/N^ 03 - OCTOBER 2003 Control of Dynamic Oligopsonies with Production Factors Laszlo Kapolyi Systems Consulting Rt, 1535 Budapest, 114, Pf- 709, Hungary and Ferenc Szidarovszky Systems and Industrial Engineering Department, University of Arizona, Tucson, Arizona 85721-0020,U.S.A. Abstract. Dynamic oligopsony is examined with discrete time scales. The controllability of the dynamic system is investigated where the competitive price is selected as the control variable. For the single product factor case complete characterization is given. A simple example illustrates that for the more generál case no generál solution can be given. We alsó elaborated the case when the fixed price of the production factors is the control variable. We show that the system is uncontrollable in this case. 1 Introduction Oligopoly and related models have been examined intensively during the last 4-5 decades. This research area goes back to Cournot (1838), who is considered the founder of this field. A comprehensive summary of results up to the mid seventies is presented in Okuguchi (1976). Variants of the classical Cournot model with applications to natural resources management are discussed in Okuguchi and Szidarovszky (1999). Most studies considered the competition among the firm in the product markét only. However there is a competition among the firins in the factor markét as well. Oligopsonies include this kind of competition in the oligopoly models, as it is shown in Szidarovszky and Okuguchi (2001). Recently a dynamic