Recon (version 0.3.0.0)

cournot_solver: Cournot Duopoly with numeric solution

Description

This function numerically finds the equilibrium in a Cournot duopoly model with quadratic functions. For guaranteed existence of equilibrium, cost parameters should be non-negative.

Usage

cournot_solver(firm1 = c(0, 1, 0), firm2 = c(0, 1, 0), demand = c(0,
  -1, 0))

Arguments

firm1

a vector of cost curve coefficients, which must be in order: intercept of firm 1's cost function, linear term's parameter of firm 1's cost function and quadratic term's parameter of firm 1's cost function

firm2

a vector of cost curve coefficients, which must be in order: intercept of firm 2's cost function, linear term's parameter of firm 2's cost function and quadratic term's parameter of firm 2's cost function

demand

a vector of demand curve coefficients, which must be in order: intercept of inverse demand function, linear coefficient, secon degree coefficient

Value

List with market price, firm output, profits and market share

Examples

# NOT RUN {
d = c(20,-1,0)
cournot_solver(demand = d)

# }