Description Usage Arguments Value Author(s) Examples

View source: R/imperfect_competition.R

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.

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

`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 |

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

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

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

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