thanks dante,<br><br>Michel<br><br><div class="gmail_quote">On Thu, Aug 11, 2011 at 12:53 PM, Dante-Gabryell Monson <span dir="ltr"><<a href="mailto:dante.monson@gmail.com">dante.monson@gmail.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;"><div class="gmail_quote"><div><div><div class="gmail_quote"><div class="im"><span style="font-size: 13px; line-height: 19px; font-family: sans-serif;"><a href="http://en.wikipedia.org/wiki/Nash_equilibrium#History" target="_blank">http://en.wikipedia.org/wiki/Nash_equilibrium#History</a></span><div>
<font face="sans-serif"><span style="line-height: 19px;"><br></span></font></div><div><font face="sans-serif"><span style="line-height: 19px;"><span style="font-size: 13px;">A version of the Nash equilibrium concept was first used by�<a href="http://en.wikipedia.org/wiki/Antoine_Augustin_Cournot" title="Antoine Augustin Cournot" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">Antoine Augustin Cournot</a>�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�<a href="http://en.wikipedia.org/wiki/Cournot_equilibrium" title="Cournot equilibrium" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">Cournot equilibrium</a>�occurs when each firm's output maximizes its profits given the output of the other firms, which is a�<a href="http://en.wikipedia.org/wiki/Pure_strategy" title="Pure strategy" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">pure strategy</a>�Nash Equilibrium.</span><br>
</span></font><div></div><div><span style="font-size: 13px; line-height: 19px; font-family: sans-serif;"><br></span></div></div><div><span style="font-size: 13px; line-height: 19px; font-family: sans-serif;"><a href="http://en.wikipedia.org/wiki/Cournot_equilibrium" target="_blank">http://en.wikipedia.org/wiki/Cournot_equilibrium</a></span></div>
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�It has the following features:</p><ul style="line-height: 1.5em; list-style-type: square; margin: 0.3em 0px 0.5em 1.6em; padding: 0px;">
<li style="margin-bottom: 0.1em;">There is more than one firm and all firms produce a�<a href="http://en.wiktionary.org/wiki/Homogeneous" title="wiktionary:Homogeneous" style="text-decoration: none; color: rgb(51, 102, 187); padding: 0px;" target="_blank">homogeneous</a>�<a href="http://en.wikipedia.org/wiki/Product_%28business%29" title="Product (business)" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">product</a>, i.e. there is no�<a href="http://en.wikipedia.org/wiki/Product_differentiation" title="Product differentiation" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">product differentiation</a>;</li>
<li style="margin-bottom: 0.1em;">Firms do not cooperate, i.e. there is no�<a href="http://en.wikipedia.org/wiki/Collusion" title="Collusion" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">collusion</a>;</li>
<li style="margin-bottom: 0.1em;">Firms have�<a href="http://en.wikipedia.org/wiki/Market_power" title="Market power" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">market power</a>, i.e. each firm's output decision affects the good's price;</li>
<li style="margin-bottom: 0.1em;">The number of firms is fixed;</li><li style="margin-bottom: 0.1em;">Firms compete in quantities, and choose quantities simultaneously;</li><li style="margin-bottom: 0.1em;">The firms are economically rational and�<a href="http://en.wikipedia.org/wiki/Game_theory" title="Game theory" style="text-decoration: none; color: rgb(6, 69, 173);" target="_blank">act strategically</a>, usually seeking to maximize profit given their competitors' decisions.</li>
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