The key elements of a great duopoly is the way the businesses work together together and exactly how they connect with each other

The key elements of a great duopoly is the way the businesses work together together and exactly how they connect with each other

A duopoly is a type of oligopoly Oligopoly The term oligopoly means an industry where there are just a small matter off companies doing work. For the a keen oligopoly, not one organization has a great , characterized by several top corporations operating from inside the a elizabeth or equivalent goods and services.

During the a beneficial duopoly, two companies control almost new totality of your own marketplace for the latest products or services they make market. When you find yourself other businesses elizabeth area, the latest determining ability regarding a duopoly is the fact that merely several companies are felt biggest members. The 2 enterprises as well as their relations together contour brand new markets it work with.

step 1. The fresh Cournot Duopoly

Antoine Cournot is actually good French mathematician and you can philosopher. During the early to help you middle-1880s, Cournot utilized their understanding of mathematics to establish and you may upload an effective tall brand of what oligopolies appear to be. The fresh new design, known as the Cournot Duopoly Design (or the Cournot Model), metropolises pounds toward quantity of goods and services delivered, stating that it’s exactly what molds the competition among them organizations for the a beneficial duopoly. From inside the Cournots model, the key players from the duopoly build a plan to actually split the marketplace in two and display they. Continue reading «The key elements of a great duopoly is the way the businesses work together together and exactly how they connect with each other»