博弈论 lecture4.pptVIP

* 博弈论 * Cournot model of oligopoly How to find a Nash equilibrium Find the quantities (q1*, ... qn*) such that qi* is firm i’s best response to other firms’ quantities That is, q1* solves Max u1(q1, q2*, ..., qn*)=q1(a-(q1+q2* +...+qn*)-c)subject to 0 ? q1 ? +∞and q2* solvesMax u2(q1*, q2 , q3*, ..., qn*)=q2(a-(q1*+q2+q3*+ ...+ qn*)-c)subject to 0 ? q2 ? +∞....... * 博弈论 * Summary Nash equilibrium Concave function and maximization Cournot model of duopoly and oligopoly Next time Bertrand model of Duopoly Reading lists Sec 1.2.B of Gibbons and Sec 3.1-3.2 of Osborne Lecture 4 May 22,