This article uses an infinite-regress model of firm-level decisions to find a rational
expectations equilibrium for a duopoly and to relate concepts of conjectural variations and …

We show that when firms have incomplete information about the market demand and their
costs, a (Bayesian) Cournot equilibrium in pure strategies may not exist, or be unique. In …

The paper covers the 1924–1949 debate on the conjectural variations approach to duopoly
theory and focuses on the evolution of economists' views about the imposition of a …

The theory of oligopoly price is very sensitive to behavioral assumptions. Even given
identical assumptions about costs and demand, different models can predict every price …

CONJECTURAL variations are at the root of duopoly theory. Cournot [5] was the first formally
to study the problem of competition arising when only two firms are selling on a market for an …

A Cournot model with an arbitrary nonlinear demand function and where firms do
notobserve their rival's actions directly is shown to allow mistaken beliefs to persist …

This paper examines duopoly models in which each firm tries to guess the reaction of its
rival to a change in its output. We seek equilibria in which the guesses are accurate, or …

Bertrand criticized Cournot's analysis of the competitive process, arguing that firms should
be seen as playing a strategy of setting price below competitors' prices (henceforth, the …

We propose a dynamic model of n-firm oligopoly that provides a logically consistent
reinterpretation of conjectural variations. Each firm solves a dynamic optimization problem …

Cournot's 1838 model of strategic interaction between competing firms has become the
primary workhorse for the analysis of imperfect competition, and shows up in a variety of …