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Topic: Cournot competition


In the News (Fri 24 May 19)

  
  Cournot competition - Wikipedia, the free encyclopedia
Cournot competition is an economic model used to describe industry structure.
The Stackelberg and Cournot models are similar because in both, competition is on quantity.
In Cournot competition, it is the simultaneity of the game (the imperfection of knowledge) that results in neither player (ceteris paribus) being at a disadvantage.
en.wikipedia.org /wiki/Cournot_competition   (1323 words)

  
 Antoine Augustin Cournot - Wikipedia, the free encyclopedia
Antoine Augustin Cournot was born at Gray, Haute-Saone.
Cournot is credited with the "one monopoly profit" theorem, which says that a monopolist can extract only one premium for being a monopolist, and getting into complementary markets does not pay.
Cournot is also credited to be one of the sources of inspiration for Leon Walras and his equilibrium theory.
en.wikipedia.org /wiki/Cournot   (512 words)

  
 Augustin Cournot
Cournot tries to prove that there are conditions where the opening of trade will lead to a decline in the quantity of the good and lower revenue.
Edgeworth (1897) revisited the model and assailed both Cournot and Bertrand for obtaining deterministic solutions, arguing that the equilibrium solution in the case of a small number of producers should always be indeterminate.
Cournot's influence on modern theory continues unabated, having been given a particular boost in the attempt to develop non-cooperative foundations for Walrasian general equilibrium theory (e.g.
cepa.newschool.edu /het/profiles/cournot.htm   (2345 words)

  
 Cournot-Bertrand Paper
Cournot arrived at the equilibrium criticized by Bertrand by assuming that each rival took the other rivals' quantities as given and then put what would be its profit maximizing quantity on the market.
All page citations for Cournot will be for this volume.) For the duopoly case, Cournot plotted the resulting equations in rectangular coordinates and pointed out that it is evident that an equilibrium can only be established where the curves intersect [Cournot, p.
Thus the derivation of figure 7 is identical with the derivation of the modern theory of differentiated oligopoly.
www.indiana.edu /~econweb/faculty/morrpap1.html   (1219 words)

  
 Cournot Oligopoly - Cambridge University Press   (Site not responding. Last check: 2007-11-07)
While there are many issues that Cournot explored in researches into the mathematical principles of the theory of wealth, the topic that he is most readily associated with - and which now is also enjoying a revival - is his model of oligopolistic interaction among firms.
This revival of interest in Cournot's model is due largely to increased emphasis by economists on capturing elements of imperfect competition and strategic behavior.
Cournot and Walras equilibrium William Novshek and Hugo Sonnenschein; 14.
www.cambridge.org /uk/catalogue/catalogue.asp?isbn=0521022843   (401 words)

  
 [No title]
The example of brand competition in cola and coffee markets presented at the end of Section 12.2 facilitates a class discussion of the costs and benefits of freedom of choice among a vast array of brand names and trademarks.
Suppose (as in the Cournot model) that each firm chooses its profit-maximizing level of output on the assumption that its competitor’s output is fixed.
Calculate the Cournot equilibrium (i.e., the values of Q1 and Q2 for which both firms are doing as well as they can given their competitors’ output).
www.cba.uh.edu /fina/lecturers/WA-chap_12.doc   (8006 words)

  
 Antoine Augustin Cournot - Biocrawler   (Site not responding. Last check: 2007-11-07)
He derived the first formula for the rule of supply and demand as a function of price.
Today, Cournot’s work is recognized in a discipline called econometrics.
You can find it there under the keyword Cournot (http://en.wikipedia.org/wiki/Cournot)The list of previous authors is available here: version history (http://en.wikipedia.org/w/index.php?title=Cournotandaction=history).
www.biocrawler.com /encyclopedia/Cournot   (454 words)

  
 Econ 310
A good starting point for the monopolistically competitive market is the situation in which there are a number of firms that are monopolizing their own individual market shares.
While Cournot understood the equilibrium consequences of his model, it was not until around 1950 that a man named Nash developed a game-theoretic solution concept now referred to as the Nash equilibrium.
The advantage of nonprice competition is that, while rivals will likely react to nonprice competition, their reaction is often times slower and less direct than would be the case for a price cut.
www.humboldt.edu /~microeco/oligop.htm   (4158 words)

  
 cournot competition - Article and Reference from OnPedia.com
Cournot competition is an economics model used to describe industry structure.
If q2=0, then firm firms residual demand is effectively the market demand, d1(0)=D. The optimal solution is for firm 1 to choose the monopoly quantity; q1(0)=q
Neither model is better, it depends on the industry as to which is more accurate.
www.onpedia.com /encyclopedia/Cournot-competition   (960 words)

  
 MONOPOLY AND X- EFFICIENCY
Adam Smith refers to monopoly as a "...great enemy to good management", and to competition as the medium for "...new divisions of labour, and new improvements of art, which never otherwise would have been thought of" Hayek claims that "It is only through the process of competition that the facts will be discovered.
The factor market is also perfectly competitive, which means the marginal productivities of both capital and labour are known, and all factor contracts are complete.
In situations where competitive pressure is light, many people will trade the disutility of greater effort, or search for the utility of feeling less pressure and of better interpersonal relations.
www.maths.tcd.ie /local/JUNK/econrev/ser/html/morton.html   (1847 words)

  
 Dimand-Dore on Cournot-Bertrand: A Reply and More
It also reiterates the proposition that Cournot treated both quantity and price rivalry and that Cournot was clearly aware of the symmetry between quantity conjectures and price conjectures in 1838.
For the competitive case, the first unnumbered equation in Chapter VIII was obtained by applying the inverse derivative rule to the k-th equation in system (6) (in Chapter VII) with n large so that the output of one producer is negligible relative to the market.
It is true that Cournot used the inverse derivative rule to shift from quantity derivatives to price derivatives, but he did so for a reason other than the one attributed to him by Magnan de Bornier.
www.iaes.org /journal/aej/sept_99/morrison/morrison.htm   (2120 words)

  
 Cournot Competition and Hit-and-Run Entry and Exit in a Teaching Experiment (Artikel (wissenschaftliche Zeitschrift)) | ...
Cournot Competition and Hit-and-Run Entry and Exit in a Teaching Experiment
We describe a computerized experiment which can be used to introduce students to imperfect competition in courses on introductory economics, industrial organization, game theory, and strategy and management.
In addition to introducing students to strategic thinking in general, the experiment serves to demonstrate that firm profits fall as the number of competitors is increased in a market, and that firms enter profitable markets.
www.alexandria.unisg.ch /publications/person/T/Christian_Thoeni/21787   (182 words)

  
 Paper: Linear complementarity models of nash cournot competition in bilateral and POOLCO power markets Power Systems, ...   (Site not responding. Last check: 2007-11-07)
Abstract Two Cournot models of imperfect competition among electricity producers are formulated as mixed linear complementarity problems (LCPs), and a simple example is presented to illustrate their application.
The models differ from other Cournot market models in that they include both of Kirchhoff s laws via a DC approximation; can include arbitragers; possess unique solutions; and are readily solved by efficient LCP algorithms.
R other applications of Cournot models are to small networks of 3 7 busses and potentially have either no price equilibria or many equilibria [15].
computing.breinestorm.net /transmission+power+market+models+model   (677 words)

  
 [No title]
Monopoly: Taking the market demand of a product to be a given mathematical function of the product’s price, Cournot derived the rule that a profit-maximizing monopolist would follow in deciding what price to charge.
Cournot’s solution to this duopoly problem is the same as the solution now called Nash Equilibrium in modern game theory.
(Keep in mind that Cournot wrote in 1838.) Cournot showed that the output will be higher and the price will be lower in duopoly than in monopoly.
www.phoenix.liu.edu /~uroy/eco54/LecNotes/cournot.doc   (458 words)

  
 Neural Networks and Firm Learning   (Site not responding. Last check: 2007-11-07)
We wrote a paper on endogenous network formation, where Cournot competition is left in the background, and we investigate firm size dynamics.
The title of the working paper is "Cournot Competition and Endogenous Firm Size", and the paper was presented at the 10th International Conference of the Society for Computational Economics and Finance, Amsterdam, The Nederlands, July 8-10, 2004.
A version of it was also presented to the Lille Artificial Economics symposium (September 2005), and was published in the Proceedings of the conference as the volume 564 of the Lecture Notes in Economics and Mathematical Systems series.
151.100.71.71 /FrancescoSaraceno/neuralindex.html   (355 words)

  
 Cournot Competition between Teams: An Experimental Study (ResearchIndex)   (Site not responding. Last check: 2007-11-07)
Abstract: In the economic literature on market competition, firms are often modeled as single decision makers and the internal organization of the firm is neglected (unitary player assumption).
However, as the literature on strategic delegation suggests, one can not generally expect that teams behave equivalently to individuals in Cournot competition.
Nevertheless, there are models of team-organization such that teams and individuals are behaviorally equivalent in Cournot oligopoly providing a...
citeseer.ist.psu.edu /686680.html   (518 words)

  
 SSRN-Cournot Competition Between Teams: An Experimental Study by Philippe Raab, Burkhard Schipper
In the economic literature on market competition, firms are often modeled as single decision makers and the internal organization of the firm is neglected (unitary player assumption).
However, as the literature on strategic delegation suggests, one can not generally expect that the behavior of teams is equivalent to the behavior of individuals in Cournot competition.
Nevertheless, there are models of team-organization such that team-firms and single-player firms are behaviorally equivalent providing a theoretical foundation for the unitary player assumption in Cournot competition.
papers.ssrn.com /sol3/papers.cfm?abstract_id=568862   (287 words)

  
 Paper: Equilibria for circular spatial Cournot markets ::   (Site not responding. Last check: 2007-11-07)
Substituting these equations into (9), we have that the second order condition is satisfied if and only if - 2m k - 1 m - 1 m m-1 + 0, k 4 2 k k-1 and it is satisfied if and only if k m.
Hamilton, J. Thisse, and A. Weskamp, 1989, "Spatial discrimination: Bertrand vs. Cournot in a model of lo cation choice" Regional Science and Urban Economics 19, 87­102.
Matsushima, N., 2001a, "Cournot competition and spatial agglomeration revisited" Economics Letters 73, 175­177.
www.medical-papers.com /firms+firm+equilibrium+cation+model/4   (545 words)

  
 Cournot Quantity Competition Game   (Site not responding. Last check: 2007-11-07)
This is a Cournot game with linear demand and constant marginal cost.
There may be tacit collusion with few sellers and fixed matchings, and there may be severe competitive pressures when there are several sellers.
The best way to become acquainted with the various features of this program is to test it (see instructions on the next page).
veconlab.econ.virginia.edu /cr/cr.htm   (368 words)

  
 kaKAsite forum :: 觀看文章 - Cournot Competition 18XX   (Site not responding. Last check: 2007-11-07)
Two firms choose quantity independently and simutaneously and arrive at the cournot equilibrium.
If both firms set the strategy as "set the quantity as half of monopoly quantity if no one deviates, and use the cournot quantity if anyone deviates", then, if the discount factor is sufficiently high, the above strategy is a subgame perfect nash equilibrium.
If you look at the simplest example, cournot static game, it is not sequential.
www.kakasite.com /forum/viewtopic.php?p=2426   (401 words)

  
 Antoine Augustin Cournot - Biocrawler   (Site not responding. Last check: 2007-11-07)
In this book he used the application of the formulas and symbols of mathematics in economic analysis, which was highly criticized.
This book was not very successful during Cournot’s lifetime, and he did try to rewrite it twice.
"Antoine Augustin Cournot" in New School Profiles (http://cepa.newschool.edu/het/profiles/cournot.htm)
www.biocrawler.com /encyclopedia/Antoine_Augustin_Cournot   (454 words)

  
 suchmir Auto: cournot Auto
We show that the strategic effects under Cournot work towards domestic anchorage in the country with adjustment costs whi...
In the field of economics he reviewed the work on Oligopoly Theory, specifically Cournot competition model produced by the French mathematician...
from 1800 to 1819 (1800-1877) Talbot (1800-1834) Feuerbach (1801-1885) Clausen (1801-1868) Plücker (1801-1892) Airy (1801-1877) Cournot (1801-1862) Ostrogradski (1801-1883) Plateau (1802-1829)...
www.suchmir-auto.de /cournot   (311 words)

  
 CEPR Discussion Paper Abstracts
Strategic behaviour by producers implies inefficient investment in R&D. I contrast the outcomes with Bertrand competition with those in Cournot competition, which I analysed in an earlier paper (Ulph (1993a)).
When only producers act strategically, they under-invest in R&D (in Cournot they over-invest), but it is not possible to give a universal ranking of policy instruments.
When governments and producers act strategically, this reduces the extent of government distortion of environmental policy, which is the same result as with Cournot, but for very different reasons; when governments use emission taxes then with Bertrand competition they set taxes below the first-best level, the reverse of what happens when only governments act strategically.
www.cepr.org /pubs/new-dps/dplist.asp?dpno=1065   (341 words)

  
 Det Økonomiske Råd - 2001:3
Imperfect competition in a liberalized Nordic electricity market is simulated in a partial equilibrium model with elaborated demand and supply systems, the latter also including bi-production of district heating.
It is found that Cournot competition can facilitate surprisingly large excess profits, even when a competitive fringe is allowed.
The results indicate that a widely used concentration measure, the Hirshman-Herfindahl index, is a poor guide for revealing market power in electricity markets.
www.dors.dk /sw2509.asp   (99 words)

  
 Janssen, Maarten: Bertrand Competition Under Uncertainty   (Site not responding. Last check: 2007-11-07)
This activity level can be endogenized in any of several ways-- as whether to incur a fixed cost of activity, as output choice, or as quality choice.
Unlike in a Cournot model with similar incomplete information, Bertrand profits always increase in the probability other firms are inactive.
Profits decline more sharply than in the Cournot model, and the pattern is similar to that found empirically by Bresnahan and Reiss (1991).
www.nuff.ox.ac.uk /users/doornik/eswc2000/a/1309.html   (139 words)

  
 CERGE-EI: Publications
The two bench mark oligopoly models -- Bertrand and Cournot -- are assumed to be possible types of market competition.
In order to analyse the problem of strategic policy under uncertainty, it is first necessary to work out in depth the optimal tariff policy in perfect information setup for both the Cournot and the Bertrand case.
We argue, then, that the "informational" criticism of strategic trade policy is less relevant than was previously thought.
www.cerge-ei.cz /publications/working_papers/abstract/123.asp   (208 words)

  
 Cournot Competition, Forward Markets and Efficiency
"Competitive Electricity Markets And Investment In New Generating Capacity," Working Papers 0609, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
"Competition with Forward Contracts: A Laboratory Analysis Motivated by Electricity Market Design," UFAE and IAE Working Papers 581.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
A Cournot Analysis of the Benefits of Electric Market Coupling," Cambridge Working Papers in Economics 0509, Faculty of Economics (formerly DAE), University of Cambridge.
ideas.repec.org /a/eee/jetheo/v59y1993i1p1-16.html   (446 words)

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