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The model was one of a number that Cournot set out "explicitly and with mathematical precision" in the volume. [4] Specifically, Cournot constructed profit functions for each firm, and then used partial differentiation to construct a function representing a firm's best response for given (exogenous) output levels of the other firm(s) in the ...
In oligopoly theory, conjectural variation is the belief that one firm has an idea about the way its competitors may react if it varies its output or price. The firm forms a conjecture about the variation in the other firm's output that will accompany any change in its own output.
The Cournot duopoly model developed in his book also introduced the concept of a (pure strategy) Nash equilibrium, the reaction function and best-response dynamics. Cournot believed that economists must utilize the tools of mathematics only to establish probable limits and to express less stable facts in more absolute terms.
The Temperament and Character Inventory (TCI) is an inventory for personality traits devised by Cloninger et al. [1] It is closely related to and an outgrowth of the Tridimensional Personality Questionnaire (TPQ), and it has also been related to the dimensions of personality in Zuckerman's alternative five and Eysenck's models [2] and those of the five factor model.
The model was formulated in 1883 by Bertrand in a review of Antoine Augustin Cournot's book Recherches sur les Principes Mathématiques de la Théorie des Richesses (1838) in which Cournot had put forward the Cournot model. [1] Cournot's model argued that each firm should maximise its profit by selecting a quantity level and then adjusting ...
This was a point first raised by Francis Edgeworth [5] and gave rise to the Bertrand–Edgeworth model. Integer pricing. Prices higher than MC are ruled out because one firm can undercut another by an arbitrarily small amount. If prices are discrete (for example have to take integer values) then one firm has to undercut the other by at least ...
Cournot may refer to: Cournot competition, an economic model of duopoly; Surname. Antoine Augustin Cournot (1801–1877), French philosopher, mathematician and economist; Michel Cournot (1922–2007), French journalist, screenwriter and film director
If the leader played a Stackelberg action, (it believes) that the follower will play Cournot. Hence it is non-optimal for the leader to play Stackelberg. In fact, its best response (by the definition of Cournot equilibrium) is to play Cournot quantity. Once it has done this, the best response of the follower is to play Cournot.