Economics Oligopoly Questions
The Cournot model is a mathematical model used to analyze oligopoly markets. It was developed by French economist Antoine Augustin Cournot in 1838. In this model, firms in an oligopoly independently determine their output levels, taking into account the anticipated reactions of their competitors. The key assumption is that each firm believes its competitors' output levels will remain constant when determining its own output. This model helps to understand how firms' strategic interactions affect market outcomes, such as prices and quantities produced, in an oligopoly market structure.