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Heterogeneous-cost Cournot Competition (view source)
Revision as of 21:34, 10 November 2013
, 21:34, 10 November 2013→Solving for optimum quantities
:<math>2q_i^* = \frac{A - c_i}{B} - \sum_{j \ne i} q_j</math>
We now need two constraints to find the solution. First, we need to solve for <math>\sum_{j\ne i}\;q_j^*</math>. There are <math>\;n</math> of these first order conditions:
:<math>
:<math>$q_i^* = \frac{\left ( A - c_i(n+1) + \sum_{i=1}^n c_i \right )}{B (n+1)}</math>
==Market clearing price and profits==
