All Questions
Tagged with nash-equilibrium oligopoly
5 questions
2
votes
1
answer
66
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How do the assumptions $p'+q_ip''<0$ and $p'-c''<0$ ensure the stability of the Nash equilibrium among private firms in basic mixed oligopoly model?
I have two quick question regarding basic oligopoly models:
What is meant by we impose the assumptions to $p'+q_ip''<0$ and $p'-c''<0$ to ensure the stability of the Nash equilibrium among ...
- 31
5
votes
2
answers
561
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Cournot oligopoly - first-order condition
I am reading an article that has this description of the first-order condition for a Cournot n-firm game:
Take $P(Q) = Q^{-1}$, $\pi_i(q_i, Q) = (Q^{-1} - c_i)q_i$.
Then the first-order condition for ...
- 153
3
votes
1
answer
163
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Perfect Bayesian Equilibrium in a two stage game with incomplete information
I would like to solve a game where firms have private information about their own type, but only know the distribution of the other firm's type. They interact in two stages, where the strategies ...
- 31
2
votes
1
answer
392
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Intuition behind a cournot duopoly nash equilibrium producing a higher output than a monopoly?
I am just wondering if someone could explain the descriptive, not mathematical intuition behind why a cournot equilibrium for a duopoly produces a higher level of output than a monopolist but lower ...
- 21
2
votes
1
answer
302
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Choosing the nondominant strategy in a duopoly
Would a company ever choose a nondominant strategy in a duopoly?
Let's take this specific example (2007 AP MicroEcon B #2). Two airlines, Airtouch and Windward, are scheduling flights for either ...
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