The paper presents a new framework of oligopolistic marketsimulation based on coevolutionary computation. The coevolutionary computationarchitecture can be regarded as a special model of the agent-basedcomputational economics (ACE), which is a computational study of economiesmodeled as dynamic systems of interacting agents. The supply functionequilibrium (SFE) model of an oligopolistic market is used in simulation. Thepiece-wise affine and continuous supply functions which have a large number ofpieces are used to numerically estimate the equilibrium supply functions of anyshapes. An example based on the cost data from the real-world electricity industryis used to validate the approach presented in this paper. Simulation results showthat the coevolutionary approach robustly converges to SFE in different cases.The approach is robust and flexible and has the potential to be used to solve thecomplicated equilibrium problems in real-world oligopolistic markets.