[P2P-F] theory of oligopoly (1838)

Thu Aug 11 08:06:36 CEST 2011

I m trying to find out on the p2pf wiki about existing pages on
"out-cooperation".

Michel, I remember, but can not find its reference, that you may have talked
in the past about something like " open source collaboration business models
having a competitive advantage on closed proprietary business models , hence
out-cooperating them" ?

Possibly the links below could be added to a talk page and one could attempt
to understand how, possibly mathematically, collaboration may influence on
such equilibrium hypothesis ?

On Thu, Aug 11, 2011 at 7:56 AM, Michel Bauwens <michel at p2pfoundation.net>wrote:

> thanks dante,
>
> Michel
>
>
> On Thu, Aug 11, 2011 at 12:53 PM, Dante-Gabryell Monson <
> dante.monson at gmail.com> wrote:
>
>> http://en.wikipedia.org/wiki/Nash_equilibrium#History
>>
>> A version of the Nash equilibrium concept was first used by Antoine
>> Augustin Cournot <http://en.wikipedia.org/wiki/Antoine_Augustin_Cournot> in
>> his theory of oligopoly (1838). In Cournot's theory, firms choose how much
>> output to produce to maximize their own profit. However, the best output for
>> one firm depends on the outputs of others. A Cournot equilibrium<http://en.wikipedia.org/wiki/Cournot_equilibrium> occurs
>> when each firm's output maximizes its profits given the output of the other
>> firms, which is a pure strategy<http://en.wikipedia.org/wiki/Pure_strategy> Nash
>> Equilibrium.
>>
>> http://en.wikipedia.org/wiki/Cournot_equilibrium
>>
>>  It has the following features:
>>
>>    - There is more than one firm and all firms produce a homogeneous<http://en.wiktionary.org/wiki/Homogeneous>
>>     product <http://en.wikipedia.org/wiki/Product_%28business%29>, i.e.
>>    there is no product differentiation<http://en.wikipedia.org/wiki/Product_differentiation>
>>    ;
>>    - Firms do not cooperate, i.e. there is no collusion<http://en.wikipedia.org/wiki/Collusion>
>>    ;
>>    - Firms have market power <http://en.wikipedia.org/wiki/Market_power>,
>>    i.e. each firm's output decision affects the good's price;
>>    - The number of firms is fixed;
>>    - Firms compete in quantities, and choose quantities simultaneously;
>>    - The firms are economically rational and act strategically<http://en.wikipedia.org/wiki/Game_theory>,
>>    usually seeking to maximize profit given their competitors' decisions.
>>
>>
>>
>>
>
>
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