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Asymptotic relations in Cournot's game

Author

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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.

Suggested Citation

  • Guerrazzi, Marco, 2012. "Asymptotic relations in Cournot's game," MPRA Paper 42761, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42761
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    References listed on IDEAS

    as
    1. Mayer, Thierry, 2000. "Spatial Cournot competition and heterogeneous production costs across locations," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 325-352, May.
    2. 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.
    3. Guerrazzi, Marco, 2012. "On involuntary unemployment: notes on efficiency-wage competition," MPRA Paper 38140, University Library of Munich, Germany.
    4. Hahn, F H, 1987. "On Involuntary Unemployment," Economic Journal, Royal Economic Society, vol. 97(388a), pages 1-16, Supplemen.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cournot's Game; Nash Equilibrium; Asymptotes;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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