Suppose there are two firms (the industry is a "duopoly"), each firm's cost function is the same, given by quadratic cost function ( C(4) = q? for all ) and the inverse demand function is linear where it is positive, given by a – Q if Q < a а - P(Q) 10 if Q > a where a > 0 is constant. Find the Nash Equilibrium of Cournot's game

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Suppose there are two firms (the industry is a
"duopoly"), each firm's cost function is the same,
given by quadratic cost function (
C(q;) = q?
for all
) and the inverse demand function is linear where it
is positive, given by
a – Q if Q < a
if Q > a
а
P(Q)
where
a > 0
is constant. Find the Nash Equilibrium of Cournot's
game
Transcribed Image Text:Suppose there are two firms (the industry is a "duopoly"), each firm's cost function is the same, given by quadratic cost function ( C(q;) = q? for all ) and the inverse demand function is linear where it is positive, given by a – Q if Q < a if Q > a а P(Q) where a > 0 is constant. Find the Nash Equilibrium of Cournot's game
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