Questions tagged [cournot]

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Looking for guide to Industrial Organization numerical modeling in Python

Is there some guide or GitHub repository that shows how to program numerical version of IO models? I would like to learn how to simulate the general $n$-firm Cournot competition model, but I can ...
csilvia's user avatar
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1 vote
1 answer
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For which number of firms in a Cournot oligopily a merger is profitable

Assume a Cournot oligopoly with N (equal to 2 or higher) symmetric firms. Firms face a demand function P=a-bQ and an average cost c. I need to find the number of firms N for which it will be ...
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3 votes
1 answer
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Stackelberg equilibrium with arbitrary number of firms

Consider a market, where N firms with average cost c compete in quantities. Assume linear demand P=a-bQ. Assume that N is arbitrary. a)Find the equilibrium of the game, where these N firms compete a ...
Super_Clown's user avatar
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How does Perfectly Competitive Output Level Compare to Cournot Output Level

So Let there be two firms with Output Level x1 and x2 .Inverse Demand Function $P=a-bX $ where $ X=x1+x2 $.Both firms have same MC denoted by $c$. Is the Perfectly Competitive O/t > Cournot O/t ...
Joa's user avatar
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1 vote
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On Cournot question

In a duopoly market, the market demand function is $y(p) = 120-p$ where $y=y_1+y_2$ Total function of firm 1 is $C_1(y_1)=20y_1$ while the reaction function of firm 2 is $y_2= 60-0.5y_1$. Assume that ...
studentp's user avatar
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3 votes
1 answer
271 views

How to calculate the maximizing number of firms in a Cournot competition?

I am trying to figure out the answer to the following two questions with given context: 'In a scenario in which there exist multiple identical firms with a large supply of products available, each ...
Lucas's user avatar
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1 vote
1 answer
329 views

How to calculate the long-run equilibrium of firms in a Cournot competition?

I am trying to solve the following question: 'In a scenario in which there exist multiple identical firms with a large supply of products available, each firm must decide how much to provide to the ...
Lucas's user avatar
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8 votes
4 answers
652 views

How can we explain quantity competition and price taking?

Note: This is a question on the didactics of microeconomics, directed to those of you who have some experience teaching this subject. When I studied the basic principles of microeconomics, a price-...
VARulle's user avatar
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