Abstract
The effects of change in transport cost are investigated for homogeneous Cournot duopoly with several regional or international markets and with decreasing marginal costs. A new existence proof is given for the unique Cournot duopoly equilibrium based on an integration of mathematical and diagrammatical approaches. Two cases are analyzed, in one of which the marginal revenue of any firm is assumed to decrease with an increase in the other firm's output, and in the other it is an increasing function of the other firm's output. In both cases the firms are assumed to have decreasing marginal costs.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
