Re: duopoly doubt

Posted by aditi5000 on Jun 21, 2012; 6:07am
URL: http://discussion-forum.276.s1.nabble.com/duopoly-doubt-tp7578431p7578443.html

maximise cournot profit - (9c square - 13c)/18 meaning
maximise wrt c
P(c) * q1(c) - c * q1(c) - [(9c2 - 13c)/18]

put q1 = (3-4c)/6  , p = (3+2c)/6 as its given in the question that the firm anticipated cournot quantity competition

You'll get c=1/2