MODELING OF OLIGOPOLISTIC PRODUCER BEHAVIOR WITH GAMS

This document describes a simple complementarity model formu- lated in GAMS. 1. Oligopolistic producer behavior An oligopoly is a situation where there are a limited number of suppliers. As a result the behavior of a single supplier has impact on the price. One could say that an oligopoly lies somewhere between the extremes formed by a monopolistic environment and the case of perfect competition (5). Assume there arem rms,