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

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 [e-mail]

Examples

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

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