People smuggling syndicates: An oligopoly analysis in context of the Söderköping process

In the article, a model of oligopolistic (duopolistic) competition between two people smuggling syndicates is developed. I consider the Cournot and Stackelberg cases. First, the deterministic case is considered, where I show the conditions of profit maximisation for the syndicates. Then, a model with stochastic variables is introduced, where the number of migrants are random. It is shown that the deterministic case is but a special case of the stochastic one, when the distribution is concentrated in one point.