A comparison of treatments of a duopoly situation. (English) Zbl 0050.15104

Mayberry, J. P.; Nash, J. F.; Shubik, M.

Econometrica 21, 141-154 (1953).

A duopoly situation is considered for given quadratic average cost functions and a linear demand curve. The authors compute the following solutions:

1.

efficient point,

2.

Edgeworth contract curve,

3.

Cournot solution,

4.

two-person non-zero sum game,

and

5.

cooperative game with and without side payments.

For the last mentioned case cf. the paper of J. Nash [ibid. 21, 128–140 (1953; Zbl 0050.14102)]. A graphical presentation gives a comprehensive view of the numerical results.

Reviewer: S. Vajda

MSC:

91B54	Special types of economic markets (including Cournot, Bertrand)
91A05	2-person games
91A12	Cooperative games

Keywords:

mathematical economics

Citations:

Zbl 0050.14102