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duopoly

Duopólio

Duopólio

No duopólio, as duas empresas funcionam "em reação" a outra (curva de reação = RF1 e RF2).

At the  Cournot model  the two firms "play" at the same time, each knowing the other's reaction curve. In this way, Cournot equilibrium will occur when the curves equalize. That is, a quantity supplied by firm 2 , which causes a quantity supplied response by firm 1 , which, in turn, generates the same quantity supplied by firm 2 initially - so it is a very classic Nash equilibrium. In the Stackelberg Model  the lead firm has an advantage over the follower firm: it sees the follower's reaction curve and chooses a point on that curve. That is, the leading firm will offer an amount X already knowing the reaction of the follower curve, in order to maximize its profit.

Subtitle

RF = Reaction Curve

Q = Quantity

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© 2021 by Caetano de A. Brito. 

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