Cournot competition

Cournot competition is an economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide on independently of each other and at the same time. It is named after Antoine Augustin Cournot (1801–1877) who was inspired by observing competition in a spring water duopoly. It has the following features: There is more than one firm and all firms produce a homogeneous product, i.e. there is no product differentiation; Firms do not cooperate, i.e. there is no collusion; Firms have market power, i.e.
This article is copied from an article on Wikipedia® - the free encyclopedia created and edited by its online user community. This article is distributed under the terms of GNU Free Documentation License.