Topic 4: Will profits in reality be higher or lower than under Cournot?

In this topic we try to answer the question: “Will profits in reality be higher or lower than under Cournot?”. We begin by reminding ourselves of the origins of Cournot competition, and then go on to analyse collusion in dynamic oligopoly, and repeated games.

Note that since we did not cover any of these slides in week 4, the class and lecture from week 4 are placed under topic 3.

Lecture:

Class: