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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