A good duopoly is a kind of oligopoly Oligopoly The expression oligopoly means a market in which there are only a small number regarding companies operating. In the a keen oligopoly, no single company enjoys a beneficial , characterized by a couple of first enterprises doing work for the a e otherwise comparable goods and services.
Into the a good duopoly, a couple of enterprises handle virtually the fresh new entirety of the marketplace for this new products or services they make and sell. Whenever you are others elizabeth room, this new identifying function off a duopoly is the fact that only two businesses are experienced major professionals. The two people in addition to their interactions together figure brand new business they work with.
step 1. Brand new Cournot Duopoly
Antoine Cournot is actually a French mathematician and philosopher. In the early so you’re able to mid-1880s, Cournot made use of his knowledge of math in order to formulate and you will upload a good significant model of what oligopolies seem like. The design, known as the Cournot Duopoly Model (or perhaps the Cournot Model), locations weight to your level of goods and services produced, proclaiming that it is exactly what molds the competition among them agencies inside an excellent duopoly. For the Cournots design, the key members in the duopoly build an arrangement to actually divide the market industry in two and you will display it. Read More …