Oligopolistic Competition:
Two rms are competing for consumers. They simultaneously decide what quantity to produce. Suppose they have identical cost c, zero xed cost and face (inverse) market demand p (q_{1}; q_{2}) = 1 - q_{1} - q_{2}. What are the equilibrium prices, quantities and prots?
Two rms are competing for consumers. They simultaneously decide what price to charge. Suppose both rms have zero xed cost, but c_{1} = 1=2 and c_{2} = 1=4. The (inverse) market demand is p (q_{1}; q_{2}) = 1 - q_{1} - q_{2}. What are the equilibrium prices, quantities and prots?
Two rms produce dierentiated products and compete in price. The market demand for rm 1's product is q_{1} (p_{1}; p_{2}) = 100 + p_{1} - 2p_{2}; and the market demand for rm 2's product is q_{2} (p_{1}; p_{2}) = 100 + p1 - 2p_{2}: Both rms have zero xed cost, identical marginal cost c = 10: What are the equilibrium prices, quantities and prots?
Two rms compete via Stackelberg competition. In period 1, rm 1 names quantity q_{1}. In period 2, rm 2 sees q_{1} and subsequently chooses quantity q_{2}. Suppose both rms have zero xed cost, identical marginal cost c = 0, and face (inverse) market demand
p (q_{1}; q_{2}) = 1 - q_{1} - q_{2}. What are the equilibrium prices, quantities and prots?