ABSTRACT
Cournot’s model of duopoly, discussed in the preceding chapter, opened up a new channel of enquiry in economics: the modelling of firm behaviour in situations of strategic interdependence in which there is more than one firm, but not so many that each is powerless. More immediate criticisms of Cournot’s model and dynamic variants are discussed above. This chapter focuses on richer models in which the symmetry of the Cournot model is abandoned, from either the producer’s or the consumer’s side.
