A competitive market model is considered with M suppliers and N customers, where eachsupplier provides a homogeneous service such as energy supply and has to offer a uniform price upondelivery to all customers. Given a price upper bound U, the model is formulated as an M person gamewith pure strategy. It is shown that the M person game has the unique Nash equilibrium if and only if eachcustomer can be serviced by at most one supplier. Furthermore, this unique Nash equilibrium is peculiarin that all suppliers adopt the same upper bound price U. In general, the M person game does not haveany Nash equilibrium. For such a case it is demonstrated that the suppliers continue to exercise their pricestrategies in a cyclic manner indefinitely.
展开▼
