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Asymptotic relations in Cournot's game

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  • Guerrazzi, Marco

Abstract

In this note, I derive the asymptotic relation verified by oligopolists' iso-profit curves within Cournot's game. Thereafter, I provide an economic rationale for such a mathematical relation. The results of this exploration suggest that for each firm the asymptotes of the iso-profit curves convey the boundaries beyond which output competitors become net purchasers of the good supplied in the market.

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File URL: http://mpra.ub.uni-muenchen.de/42779/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 42761.

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Date of creation: Nov 2012
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Handle: RePEc:pra:mprapa:42761

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Keywords: Cournot's Game; Nash Equilibrium; Asymptotes;

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  1. Guerrazzi, Marco, 2012. "On involuntary unemployment: notes on efficiency-wage competition," MPRA Paper 38140, University Library of Munich, Germany.
  2. Mayer, T., 1999. "Spatial Cournot Competition and Heterogeneous Production Costs Across Locations," Papiers d'Economie Mathématique et Applications, Université Panthéon-Sorbonne (Paris 1) 1999.89, Université Panthéon-Sorbonne (Paris 1).
  3. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
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