Subscription or Fee Access
A Dynamic Cournot Model of Multiple Manufacturers with Different Marginal Cost
According to previous studies, we establish a general dynamic Cournot model of multiple manufacturers with different marginal cost and give its mathematical expression. The dynamic Cournot model is be extended to the more general case because the number of manufacturer is changed from two with zero margin cost to multiple with different margin cost. Then we solve equilibrium quantity of manufacturer for each stage. Under various conditions the game equilibriums are compared through the numerical examples. It will not only better reflect the broader realistic cases, but it is beneficial to formulate production decision tools for manufacturers. The conclusions are drawn as follows. Firstly, the equilibrium quantity of manufacturers will tend to a certain same value with the same marginal cost by repeated game. Secondly, there is negative relationship between the final equilibrium quantity and the marginal cost. Finally, the manufacturers with lower marginal quantity cost are able to produce more products and gain more profits than other manufacturers when the market price is certain, so the lower cost manufacturers have a cost competitive advantage.
marginal cost; multiple manufacturers; dynamic cournot model; equilibrium quantity.
Disclaimer/Regarding indexing issue:
We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information. Also: DOI is paid service which provided by a third party. We never mentioned that we go for this for our any journal. However, journal have no objection if author go directly for this paid DOI service.