Cournot duopoly model

(1838)

Named after French economist Antoine Augustin Cournot (1801-1877), Cournot duopoly model shows two firms that react to one another's output changes until they eventually reach a position from which neither would wish to depart.

Both firms eventually expand to such a degree that they have equal shares in the market and secure only normal profits.

Also see: duopoly theory, bertrand duopoly model, bilateral monopoly

Source:
A Cournot, Richerches sur lesprincipes mathema-tiques de la théorie des richesses (Paris, 1838)


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