Cournot Model

Cournot Model Assignment Help

Cournot Model

Cournot's Model is among the earliest attempts to analyse the price and output decision – market process under duopoly, but its conclusions are equally applicable to oligopolistic market situations, markets with more than two interdependent decision – making firms.
Cournot’s modern is based upon the following assumptions:

  • There are only two producers producing identical products.
  • Both the producers have indentical costs.
  • Each producer decides his own profit maximizing level of output on the assumption that his competitor will not change his own level of output.


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