Fixed-Point Approaches to Computing Bertrand-Nash Equilibrium Prices Under Mixed Logit Demand: A Technical Framework for Analysis and Efficient Computational Methods
Numerical Analysis
2010-12-30 v1
Abstract
This article presents a detailed technical framework for modeling with Bertrand-Nash equilibrium prices under Mixed Logit demand. Two coercive fixed-point equations provide more stable computational methods than those obtained from the literal first-order conditions. Assumptions to justify derivation and use of these equations are provided. A brief discussion of a GMRES-Newton method with hookstep globalization strategy originally due to Viswanath is also given. This article can be considered a supplement to an article by the authors forthcoming in the journal {\em Operations Research}.
Cite
@article{arxiv.1012.5836,
title = {Fixed-Point Approaches to Computing Bertrand-Nash Equilibrium Prices Under Mixed Logit Demand: A Technical Framework for Analysis and Efficient Computational Methods},
author = {W. Ross Morrow and Steven J. Skerlos},
journal= {arXiv preprint arXiv:1012.5836},
year = {2010}
}
Comments
57 pages