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Respond to the question: HELP NASH COURNOT?

02/21/2010 05:29 AM by Prad; HELP!! NASH, COURNOT
Suppose there are I farmers, each of whom has the right to graze cows on the village common. The amount of milk a caw produces depends on the total numbers of cows, N, grazing on the green. The revenue produced by ni cows is ni x v(N) where v(0)>0, v'<0 and v''<0
Each cow costs c, v(0) >c and cows are perfectly divisible. Farmers decide simultaneously how many cows to purchase; all purchased cows will graze on the common.
(a) Find the Nash equilibrium and compare it against the social optimum
(b) Discuss the relationship between this game and the Cournot oligopoly model [Manage messages]