Oligopoly
3 years ago
Microeconomics
Nash equilibrium – Set of strategies or actions in which each firm does the best it can given its competitors’ actions.
Duopoly – Market in which two firms compete with each other.
Cournot model – Oligopoly model in which firms produce a homogenous good, each firm treats the output of its competitors as fixed, and all firms decide simultaneously how much to produce.
Reaction curve – Relationship between a firm’s profit-maximizing output and the amount it thinks its competitors will produce.
Cournot equilibrium – Equilibrium in the Cournot model in which each firms correctly assumes how much its competitor will produce and sets its own production level accordingly.
Bijay Satyal
Dec 1, 2021