Cournot Competition | Microeconomics by Game Theory 101

[@Jaylevation]

0:57: In *Stackelberg* competition we have sequential moves.

[@doomsvile]

Hands down the best game theory content on the internet. Thanks a million for this!! - If anyone hasn't checked out his book, I guarantee you won't find game theory more simplified anywhere.

[@noel5283]

The class material didn't help me to understand this concept, neither did my professor, other youtube videos or any other source of information. You sir, are a legend! Thank you!

[@15yearoldogi]

Neither did Business degree from University, Economicst = empty-headed.

[@Asw_2004]

Please solve: A variant of this example was first introduced by Augustin Cournot (1838). Two identical firms, players 1 and 2, produce some good. Assume that there are no fixed costs of production, and let the variable cost to each firm i of producing quantity qi ≥ 0 be given by the cost function, ci (qi ) = q 2 i for i ∈ {1, 2}. Demand is given by the function q = 100 − p, where q = q1 + q2 .

[@realFriedrichHayek]

damn bro... I wish I had this for my exam last month :(

[@alexcerny5881]

This also means q_1 = (a - 2c_1 + c_2) / 3

[@PunmasterSTP]

Cournot? More like “Cool, yo!”, because I think this stuff is really neat. Thanks for making all these videos!

[@rationalagent6927]

Looking forward to this new series thanks for taking the time to make these

[@vanessahili1074]

Good video. It would be great if you could do some actual working examples

[@drsu5638]

Thank you for this, very helpful supplement to lectures!

[@silverkobo]

Amazing, thank you

[@revimfadli4666]

What if they don't know each other's marginal costs?

[@glebsokolov6524]

Thank you! You are the best !

[@rebekahfrogoso5326]

Thank you for this! Can you also go over the Bertrand’s Model please?

[@Gametheory101]

Yep, plan is to do that after Stackelberg.

[@rebekahfrogoso5326]

Looking forward to it! Sorry just a question, let's say there's a capacity constraint of F=20 and the NE without the capacity constraint is (24,18). In the case of F=20, do I consider firm 1 to produce 20 instead of 24 and plug it in firm 2's best response function to find the new NE with the constraint?

[@Gametheory101]

@@rebekahfrogoso5326 That will probably get you to the right answer, but you should double check that firm 1 wants to produce 20 given that firm 2 is playing its best response to firm 1 producing 20.

[@marzoukiahlem6206]

Is it possible to understand all game theories exist in microeconomics in 4 days I'm going to lose my master degree if I dont pass it

[@PunmasterSTP]

Dang it sounds like things came down to the wire, and I hope they went well. How did things turn out?

[@brandonwalker6069]

@@PunmasterSTP If their comment was true and they were starting with no understanding of game theory then they almost certainly failed their qual exam.

[@PunmasterSTP]

@@brandonwalker6069 That was my hunch, but I was still curious. I've made something of a habit of replying to old comments that mention an upcoming (for the time) event. It's led to some cool conversations, and hopefully it drives up engagement on the videos.