Decision of Production Combinations Based on Cournot Model and Linear Programming

Hanyang Li, Yuxuan Li, Xiaoti Wu

2024

Abstract

This paper explores production strategies for micro electric vehicle manufacturers in small cities using a revised Cournot model and linear programming. Focusing on cities like Liuzhou, Nanyang, and Shangqiu, where market dynamics favour oligopolies, the traditional Cournot model is adapted to emphasize cost-based strategies. By integrating unit costs as variables representing service levels, the model examines competition among manufacturers providing different service levels within the same market. A payoff matrix and linear programming determine optimal strategies for maximizing profits while maintaining market stability. The study highlights the importance of strategic decisions in cost control, brand positioning, and supply chain management. Results indicate that both firms should adopt mixed strategies to enhance competitiveness and profitability. The paper suggests future research to refine the model for more complex market scenarios, including additional competitors and dynamic market conditions. This research provides insights into market competition strategies and lays the groundwork for more nuanced economic and mathematical analyses.

Paper Citation

in Harvard Style

Li H., Li Y. and Wu X. (2024). Decision of Production Combinations Based on Cournot Model and Linear Programming. In Proceedings of the 1st International Conference on Innovations in Applied Mathematics, Physics and Astronomy - Volume 1: IAMPA; ISBN 978-989-758-722-1, SciTePress, pages 119-125. DOI: 10.5220/0013001000004601

in Bibtex Style

@conference{iampa24,
author={Hanyang Li and Yuxuan Li and Xiaoti Wu},
title={Decision of Production Combinations Based on Cournot Model and Linear Programming},
booktitle={Proceedings of the 1st International Conference on Innovations in Applied Mathematics, Physics and Astronomy - Volume 1: IAMPA},
year={2024},
pages={119-125},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013001000004601},
isbn={978-989-758-722-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Innovations in Applied Mathematics, Physics and Astronomy - Volume 1: IAMPA
TI - Decision of Production Combinations Based on Cournot Model and Linear Programming
SN - 978-989-758-722-1
AU - Li H.
AU - Li Y.
AU - Wu X.
PY - 2024
SP - 119
EP - 125
DO - 10.5220/0013001000004601
PB - SciTePress