Cournot Duopoly - Reaction Function

Q1 and Q2 are the quantities of production of the Firm 1 and Firm 2. The reaction function of the Firm 1: Q1 = Q1(Q2) gives the value of Q1, maximizing the profit of the Firm 1 - given the choice Q2 of the Firm 2. In the discrete game, the same thing is called as the "best response".

 

Jüri Eintalu

 
Resource Type
Activity
Tags
cournot  duopoly  function  reaction  theory 
Target Group (Age)
18 – 19+
Language
English
 
 
 
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