Government control of Stackelberg equilibrium at natural monopoly

Abstract

Aim of paper is the increasing of effectiveness of government control methodology of natural mo-nopoly. The problem is formulated as two tasks: to build a model of interaction monopolist and buyer at the market; to build a model of interaction government and this market. The market is formalized as non-cooperative non-antagonistic two-person game. Stackelberg equilibrium in mixed strategies is established at the market. Governments influence the equilibrium only non-price methods by setting corrective matrices. The task of finding the optimal government corrective matrices is solved in this paper.