Cournot competition

Cournot competition is an economic model that describes anindustry in which firms compete on the quantity of output they decide to produce, assuming that their competitors' output levels will remain constant. The model was developed by the French economist Antoine Cournot in 1838. In a Cournot competition setting, firms choose their output levels simultaneously and independently. Each firm makes its decision based on the assumption of how much output the other firms will produce.