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Modeling the Expansion of the Production Capacity of Companies in the Oligopoly Market

The article discusses the problem of choosing a strategy for expanding the production capacity of companies in a spatial oligopoly, which is formulated as a set of interrelated problems of nonlinear optimization with coupled variables. To solve it, a method is proposed for reducing the original problem to solving the mixed complementarity problem (MCP), as well as to solving mathematical programs with equilibrium constraints (MPEC). The prospects and directions of using the proposed approach to solving applied problems of the spatial development of production systems are discussed.