Monopolydemand functionCournotrelative risk aversionA necessary and sufficient condition for the decreasingness of marginal revenue, in terms of the convexity of the demand function, is provided. The result improves on Walter's (1980). A related problem already approached by Cournot is also discussed...
Three stage SBG is employed in (Zhang et al., 2021) to model service providers optimal pricing and decisions in the framework of monopoly market. Two-stage Cournot competition and Bertrand competition are used to model quantity contract and optimal pricing contract for service providers in the duo...
In this section, the formal definition of aNash equilibriumis first introduced. With this definition, an application of theoptimalitycondition leads to that a problem has aNash equilibriumif and only if system(2.1)has a solution. After exploiting the properties of pure strategy and multilinear term...
Describe the condition that characterizes the long-run equilibrium in a competitive market. Describe the transition from short-run to long-run equilibrium in a monopolistically competitive industry. Provide an example of an industry ...
A monopolist who is earning abnormal profits in the short – run would continue to do so even in the long – run would continue to do so even in the long – run. This is because by the very nature of monopoly the entry of the new firms is blocked even in the long – run. And ...
But you could also just split the monopoly quantity, for example, half half at this point here. So if the firms wanted to make more money, the only thing they could do is they could sign an agreement saying, why don't each of us produce not our Cournot quantity, but produce half ...
The demand schedule is a tabular representation of the demand curve. It shows the different quantities of a good or service that are demanded at different price levels. The supply schedule, on the other hand, is the tabular representatio...
common-value component (that may depend on the state, yet not on the player’s identity) and a private-value component (that may depend on a player’s identity and type, yet not directly on the state).Footnote15The condition subsumes a large variety of commonly used information structures....
First, assuming existence of monotone best-replies to monotone strategies of one's opponents, we show that there will be a fixed point, i.e. an equilibrium. Of course, this is an endogenous condition. Thus we provide such exogenous sufficient conditions in the second step. Regarding the ...
Studying of Assessment and Choice of Compete Stratagem; 竞争战略评价与选择研究 2. In this paper, through a theoretical mathematical model we analysis the dynamic of market from compete to monopoly and reveals the inherit mechanism and outer condition of enterprise enlarging the production scale under...