Please use this identifier to cite or link to this item: http://hdl.handle.net/10216/91392
Author(s): A. A. Pinto
F. A. Ferreira
M. Ferreira
B. M. P. M. Oliveira
Title: Cournot model with investments to change the market size
Issue Date: 2007
Abstract: We present a new deterministic dynamical model on the market size of Cournot competitions, based on Nash equilibria ofR&D investment strategies to increase the size of the market of the firms at every period of the game. We compute the uniqueNash equilibrium for the second subgame and the profit functions for both firms. Adding uncertainty to the R&D investmentstrategies, we get a new stochastic dynamical model and we analyse the importance of the uncertainty to reverse the initialadvantage of one firm with respect to the other.
Description: We present a new deterministic dynamical model on the market size of Cournot competitions, based on Nash equilibria ofR&D investment strategies to increase the size of the market of the firms at every period of the game. We compute the uniqueNash equilibrium for the second subgame and the profit functions for both firms. Adding uncertainty to the R&D investmentstrategies, we get a new stochastic dynamical model and we analyse the importance of the uncertainty to reverse the initialadvantage of one firm with respect to the other.
Subject: Matemática
Mathematics
Call Number: 48834
URI: http://hdl.handle.net/10216/91392
Source: Proceedings in Applied Mathemetics and Mechanics (PAMM)
Document Type: Artigo em Livro de Atas de Conferência Internacional
Rights: restrictedAccess
Appears in Collections:FCUP - Artigo em Livro de Atas de Conferência Internacional

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