Will all autonomous cars cooperate? Brands’ strategic interactions under dynamic congestion

• Investigate the strategic interactions of multiple car brands, which provide both autonomous and normal cars. Propose a two-stage game theoretic model for duopoly competition, with first choice cooperation strategy then Bertrand competition imperfect substitutes. Reveal brands’ incentives pricing decisions under four market structures: perfect public monopoly, private monopoly. Analyze welfare effects different structures. Autonomous cars allow safe driving smaller headway than that required human-driven cars, thereby potentially improving road capacity. To attain this capacity benefit, among is vital. However, future may have brands incentive them to cooperate unknown. This paper investigates between that, vehicles. We develop game-theoretic investigate evaluate, from policy organizational perspectives, implications their competition. compare welfare-maximizing profit-maximizing Various parameters are evaluated, including factors such as benefits cooperation, cost price elasticity. evaluation provides insights into actions could be considered by regulators organizations operation