Giocoli, Nicola (2008): Reaction curves. Published in: Famous Figures and Diagrams in Economics, edited by Mark Blaug and Peter J. Lloyd, Edward Elgar, Cheltenham (UK), (2010): pp. 137144.

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Abstract
A reaction curve RC, also called reaction function or bestreply function, is the locus of optimal, i.e. profitmaximizing, actions that a firm may undertake for any given action chosen by a rival firm. The RC diagram is the standard tool for the graphical analysis of duopoly. In the diagram the market equilibrium is at the intersection of the RCs, one for each firm. The commonest case of RC diagram is that of the Cournot duopoly model.
Item Type:  MPRA Paper 

Original Title:  Reaction curves 
Language:  English 
Keywords:  reaction curves; duopoly; Cournot 
Subjects:  B  History of Economic Thought, Methodology, and Heterodox Approaches > B1  History of Economic Thought through 1925 > B10  General L  Industrial Organization > L1  Market Structure, Firm Strategy, and Market Performance > L13  Oligopoly and Other Imperfect Markets C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C70  General 
Item ID:  33809 
Depositing User:  Nicola Giocoli 
Date Deposited:  30 Sep 2011 19:18 
Last Modified:  19 Nov 2016 21:38 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/33809 