单词 | Cournot competition |
释义 | Cournot competition Competition between two or more firms, where each assumes that the others will hold the quantity they produce unchanged. If there are only two firms, that is duopoly, Cournot competition produces an equilibrium with price lower and total output higher than with monopoly. A Cournot equilibrium becomes more similar to a perfectly competitive equilibrium the more firms there are, and the better substitutes their products are for one another. The Cournot assumption is not very realistic: over time one would expect the firms to realize that the others do vary their quantities, and adopt a more sophisticated forecasting technique. |
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