What is Duopoly? Examples, Characteristics and Types | Analytics Steps
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What is Duopoly? Examples, Characteristics and Types | Analytics Steps
Two firms dominate nearly the entire marketplace for the goods and services they manufacture and sell. But how? Let’s check out the concept of duopoly in detail.
Feb 1, 2022
Duopoly Examples
1. Consider a Cournot duopoly model with (inverse) aggregate demand P = a – Q. Firms haveasymmetric marginal costs, c, for firm 1 and c2 for firm 2. What is the Nash equilibrium if 0 a c1?
1. Consider a Cournot duopoly model with (inverse) aggregate demand P = a – Q. Firms haveasymmetric marginal costs, c, for firm 1 and c2 for firm 2. What is the Nash equilibrium if 0 a c1?
numerade.com
Jan 2, 2024
SOLVED: Consider a duopoly that will last two more years in which each firm is currently suffering losses of c dollars per period. If one of the firms were to drop out, then the remaining firm would make a monopoly profit of T dollars per period for the remainder of the two years. Each firm can choose when to drop out: today (date 0), or a year from now (date 1), or it can stay till the end (date 2). Each firm only cares about profits. The payoff matrix is:| | Date 0 | Date 1 | Date 2 ||
SOLVED: Consider a duopoly that will last two more years in which each firm is currently suffering losses of c dollars per period. If one of the firms were to drop out, then the remaining firm would make a monopoly profit of T dollars per period for the remainder of the two years. Each firm can choose when to drop out: today (date 0), or a year from now (date 1), or it can stay till the end (date 2). Each firm only cares about profits. The payoff matrix is:| | Date 0 | Date 1 | Date 2 ||
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