# cournot_solver: Cournot Duopoly with numeric solution In Recon: Computational Tools for Economics

## Description

This function numerically finds the equilibrium in a Cournot duopoly model with quadratic functions. For guaranteed existence of equilibrium, cost parameters should be non-negative.

## Usage

 ```1 2``` ```cournot_solver(firm1 = c(0, 1, 0), firm2 = c(0, 1, 0), demand = c(0, -1, 0)) ```

## Arguments

 `firm1` a vector of cost curve coefficients, which must be in order: intercept of firm 1's cost function, linear term's parameter of firm 1's cost function and quadratic term's parameter of firm 1's cost function `firm2` a vector of cost curve coefficients, which must be in order: intercept of firm 2's cost function, linear term's parameter of firm 2's cost function and quadratic term's parameter of firm 2's cost function `demand` a vector of demand curve coefficients, which must be in order: intercept of inverse demand function, linear coefficient, secon degree coefficient

## Value

List with market price, firm output, profits and market share

## Author(s)

Diego S. Cardoso, Dyson School of Applied Economics & Management, Cornell University mail@diegoscardoso.com

## Examples

 ```1 2``` ```d = c(20,-1,0) cournot_solver(demand = d) ```

Recon documentation built on July 30, 2019, 9:03 a.m.