1953/01/01 by John P. Mayberry, John F. Nash, Martín Shubik · 2 citations
Economics, Econometrics and Finance · Business, Management and Accounting · #Economic theories and models #Consumer Market Behavior and Pricing #Organizational Management and Leadership #Duopoly #Economics #Mathematical economics #Cournot competition
paper · doi:10.2307/1906952
openalex publication_date 1953/01/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/11
The purpose of this paper was to take a simple model of two firms in competition, with explicit cost functions and an explicit demand function, and to examine the behavior of the firms on the basis of each of several theories. It was assumed there is no collusion among the buyers, so that the demand function remains fixed and describes the action of the market. Each theory discussed, except the 'contract curve' of Edgeworth, gives a uniquely determined pair of production rates, and all the others, with the exception of the Von Neumann and Morgenstern solution, determine the profit made by each of the two producers. Graphs are given showing the production rates and profits for the various solutions, and will serve to compare the effect of the different formulations on the behavior of the firms.