Social and Behavioral Sciences Commons^™

The Dynamics Of Duopoly, Gordon E. Johnson

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

A monopolist, knowing the demand curve for his product, can in a given period produce the quantity of this product which will maximize his profit. Any larger or smaller quantity will result in less profit. When another manufacturer starts producing the same or similar product, a duopoly result. The new manufacturer, in order to maximize his profit, according to Cournot, will choose a quantity that is derived on the assumption that the original manufacturer's quantity will remain fixed.