ch 9 notes.docx - Ch 9 Sweezy oligopoly characteristics The...

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Ch 9 Sweezy oligopoly characteristics:
Cournot Characteristics: The firms produce either differentiated or homogeneous products. Each firm believes rivals will hold their output constant if it changes its output.
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Firms produce either differentiated or homogeneous products. A single firm (the leader) chooses an output before all other firms choose their outputs. leader has a “first-mover” advantage; All other firms (the followers) take as given the output of the leader and choose outputs that maximize profits given the leader’s output. each follower behaves just like a Cournot oligopolist

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