Prediction On Multi Oligarchs Cournot Model Of Rare Earth Products Market

Rare earth is a general term for17kinds of special metals, its products mainly include permanent magneticmaterials, luminescence materials, polishing materials, catalytic materials and other products. Rare earth application is very extensive, such as TV picture tube, medical, nuclear physics, military field, therefore it was well known as "industrial vitamin". Has been rare earth resources exist in oligopoly market development intensity is too large, source products surplus,"three wastes" emissions overweight, rare earth products, smuggling and excessive competition, and many other problems, related department put forward the corresponding policy to a certain extent abated, but rare earth enterprise profit is low, the product still not solved the problem of excess.Cournot model is the study of every manufacturer how to choose their own benefit maximization of production strategy to make the game theory model, the present research results are mostly for each oligarch only produce a product and have certain differences in alternative products. And rare earth products is to have a uniform standard of product quality, the products have different quality levels. According to the practical demand, this paper aims to build cournot model with different quality grade standard products and equilibrium numerical solution is given.Producers implement unified quality grade standard is presented in this paper under the situation of cournot oligopoly competition model is established, and the quality grade product follow the linear demand function and its parameters is associated with production quality grades, the manufacturer can produce any quality level and production cost is different. Select number of oligarchs advantage, their own costs and cost of rivals, the product cost and product cost disadvantages that three sets of variables designed2592example, analyzed the impact of the equilibrium of the model. Each producer using Lingo software, decision-making, Visual c++call Lingo to realize iterative convergence in solving, results in SQL Server database.By the study found that the quality grade products of cournot model results with no cournot model of different quality grade products. The former than the latter in the oligarchs number increase will lead to market products output growth in large and small fall of gross profit; The former than the latter’s own costs by higher costs than rivals, cost advantage to reduce the cost of the product than disadvantage to reduce the cost of the product, the degree of contribution to profits of big is small. These conclusions for new firms to enter the rare earth industry and the production of rare earth enterprise decision-making has reference significance.