Moving Economic Models from the Chalk Board to the Computer: A Computer-Based Assignment Based on a Dynamic Cournot Model
AbstractThis paper presents an iterative model, programmed in Mathematica, which solves time paths for repeated Cournot games allowing us to see how output, price, profits, and market share in the two-firm case change over time when one firm experiences per turn marginal cost reductions. By adjusting the marginal cost reduction rate for one firm and iterating, students can explore the various solutions and gain a better understanding of how the variables in the model diverge over time and the properties of that divergence. More generally, students gain experience designing models and programming in Mathematica and furthermore develop a deeper understanding of iteration in simulations.
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Bibliographic InfoArticle provided by Economics Network, University of Bristol in its journal Computers in Higher Education Economics Review.
Volume (Year): 19 (2007)
Issue (Month): 1 ()
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Postal: University of Bristol, BS8 1HH, United Kingdom
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Web page: http://www.economicsnetwork.ac.uk/cheer
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hans M. Amman & David A. Kendrick, . "Computational Economics," Online economics textbooks, SUNY-Oswego, Department of Economics, number comp1, January.
- David A. Belsley, 1997.
"Mathematica as an Environment for doing Economics and Econometrics,"
Boston College Working Papers in Economics
364, Boston College Department of Economics.
- Belsley, David A, 1999. "Mathematica as an Environment for Doing Economics and Econometrics," Computational Economics, Society for Computational Economics, vol. 14(1-2), pages 69-87, October.
- Tim Kochanski, 2012. "Toward Teaching Markets as Complex Systems: A Web Based Simulation Assignment Implemented in Netlogo," International Review of Economic Education, Economics Network, University of Bristol, vol. 11(2), pages 102-114.
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