Coopetition Games and Its Application in Cournot Model

Coopetition has become the current strategic trend of the economic development. In this paper, coopetition game and the equi‘ibrium have been developed through comparing the characteristics of cooperation game with those of competition game. Furthmore, an algorithm using one kind of minimax theorem proposed by Dingzhu-Du in 1990 is put forward to solve coopetitior game. The algorithm has great advantages over other methods, which can solve irregular and non-differential concave or convex function of the games.A coopetition game of cournot model with asymmetric oligarchs is advanced and the coopetition equilibriums have been obtained by simulation. The simulation results are compared with that of Nash equilibrium. Conclusions can be made that more members in a coalition could get higher satisfaction degrees at coopetition equilibriums, which is dependent on cost and potential market demands.