Cournot Duopoly Model

Discipline: Economics

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: bertrand duopoly model, bilateral monopoly, duopoly theory

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

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