Cournot Oligopoly | Microeconomics by Game Theory 101

Описание к видео Cournot Oligopoly | Microeconomics by Game Theory 101

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So far, we have explored Cournot duopolies, where exactly two firms compete with one another. This lecture generalizes the idea to a Cournot oligopoly with n firms, discusses such games can be solved in principle, and draws a comparison to perfect competition when firms are symmetric.

The solution process is the same three step process as before:

1) Write out a generic firm's profit function.
2) Take a derivative to find a generic firm's best response to the other firms' actions.
3) Use the system of equations from the previous step to calculate each firm's optimal quantity.

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