Re: Cournot Oligopoly Questions!!!!

Posted by Mauli on May 25, 2013; 1:17pm
URL: http://discussion-forum.276.s1.nabble.com/Cournot-Oligopoly-Questions-tp7581233p7581245.html

for q2
from 1st eqn in the ques

p1= a+p2-q1
p2=a+p1-q2
put p2 in p1
p1 we get as a function of q1 ,q2
then same max
               q1     p(q1,q2)*q1
an similarly for q2.
here also the quest is symetric. so q1=q2.
final ans i m gtng is
q1*=q2*=3a/5.
p*=2a/5. and the profit follows.
pl cnfrm my ans to this ques.