Heterogeneous-cost Cournot Competition

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Revision as of 21:13, 10 November 2013 by imported>Ed (New page: Solving the heterogeneous-cost Cournot competition model is pretty straight forward and is a good exercise for both undergraduate and graduate students. Here's how it's done. ==The Set-up...)
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Solving the heterogeneous-cost Cournot competition model is pretty straight forward and is a good exercise for both undergraduate and graduate students. Here's how it's done.

The Set-up

Suppose that we have

Solving for optimum quantities

Market clearing price and profits

Comparison to other solutions

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