Duopoly

A duopoly is a form of oligopoly where only two producers are present in a given market. In the field of industrial organization, it is most commonly studied form of oligopoly due to its simplicity.

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There are two principal duopoly models, Cournot duopoly and Bertrand duopoly:

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• The Cournot model, which shows that two firms react to one another's production (quantity) changes until they reach a Nash equilibrium.
• The Bertrand model, in which, in a game of two firms, each one of them will assume that the other will not change prices in response to its price cuts. When both firms use this logic, they will reach a Nash Equilibrium.

Oligopoly: An oligopoly is market form in which a market is dominated by a small number of sellers (oligopolists). The word is derived from the Greek for few sellers. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. Oligopolistic markets are c...

Market: In general parlance, a market is a location where those willing to pay a price for something meet those willing to sell it. In marketing, a market is the sum total of potential buyers of a product....

Industrial organization: Industrial organization is the field of economics that studies the behavior of firms, the structure of markets and of their interactions. Theoretical analysis in the field is heavily based on game theory. This is not to be confused with the related psychological area, Industrial and organizational ...