Understanding strategic competition using numerical simulations and dynamic diagrams in Mathematica

The paper shows how to use Mathematica to study the properties of strategic competition models. The advantage of this software is that students can see, modify and solve the algebra behind the models. In addition the paper shows how to use the command Manipulate to produce dynamic diagrams and animations. Dynamic diagrams are extremely useful to help students understanding diagrammatic shifts related to comparative statics analysis. Two examples are discussed: the Cournot duopoly and the Hotelling (1929) linear city model.