Description
Calculate raw and nonnegative residual demand after rival quantity.
Game-theoretic calculations depend on specified players, actions, payoff direction, probabilities and continuation assumptions. A single incentive term, coalition inequality or candidate best response is only part of a complete equilibrium argument. Supplied preferences and payoffs are model inputs rather than observed behavior or a moral allocation rule.
Calculate raw and nonnegative residual demand after rival quantity.
When to use this tool
Use Duopoly Firm Residual Demand Term when checking the stated local payoff, strategy, matching or repeated-game condition.
How to use the tool and how it works
- Enter marketQuantityAtPrice, rivalQuantity. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read rawResidualQuantity, nonnegativeResidualQuantity. Use the output convention below.
Require nonnegative market quantity and rival quantity. Return market-rival and its positive part separately.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| marketQuantityAtPrice | Market Quantity At Price | Required. Finite number; minimum 0. |
| rivalQuantity | Rival Quantity | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| rawResidualQuantity | Raw Residual Quantity | Required. Finite number. |
| nonnegativeResidualQuantity | Nonnegative Residual Quantity | Required. Finite number. |
{
"input": {
"marketQuantityAtPrice": 100,
"rivalQuantity": 30
},
"output": {
"rawResidualQuantity": 70,
"nonnegativeResidualQuantity": 70
}
}Limitations and assumptions
- Residual demand is evaluated at a caller-supplied price scenario; no demand curve, market clearing, capacity or equilibrium quantity is inferred.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use the complete game, feasible strategy space and justified information/continuation assumptions for equilibrium, welfare or actual decision analysis.
References
Similar or alternative tools
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