Скачать или смотреть Understanding the Cournot Model: A Game Theoretic analysis of Duopoly market

In this video, we explore the Cournot model of duopoly in game theory. We start by defining the basics of the Cournot model, which involves two firms that compete in a market by producing a homogenous good. Each firm chooses its output level simultaneously, taking into account its competitor's output level and the market demand.

We then delve into the Nash equilibrium of the Cournot model, which is the point at which neither firm can increase its profit by changing its output level unilaterally. We discuss how the equilibrium output levels can be calculated using simple algebraic equations and how the equilibrium depends on the market demand and the firms' production costs.

Finally, we explore the implications of the Cournot model for market outcomes, such as the market price and total output.

Overall, this video provides a clear and intuitive introduction to the Cournot model of duopoly, offering valuable insights into the strategic interactions between firms in competitive markets.


#gametheory #duopoly #ugcnet #economics