Asymmetric Duopolies Reshape Competitive Landscapes, Transforming Economic Realities
The article uses a method called Complete Analysis of Differentiable Games to study a classic economic scenario known as Cournot Duopoly, where two companies compete. By applying new algorithms and software, the researchers gained a comprehensive understanding of how these companies interact, especially in cases where they have different levels of power. They also found that by adjusting the traditional cost model, they could better explain real-world situations where companies have varying levels of influence.