midGame Theory
What is Cournot competition model?
Updated May 16, 2026
Short answer
Cournot competition is a model where firms choose output quantities simultaneously.
Deep explanation
Each firm decides how much to produce assuming competitors' outputs are fixed. Market price depends on total output, and equilibrium is reached when no firm benefits by changing output.
Real-world example
Used in oligopoly markets like oil production.
Common mistakes
- Confusing price competition with quantity competition.
Follow-up questions
- Cournot vs Bertrand?
- What is Nash equilibrium in Cournot?