Game theoryClassroom · multi-user
Cournot Competition — Setting Output
Paired as two firms, you both choose how much to produce each round. Total output sets the market price, so output and price settle between the monopoly and perfectly-competitive outcomes — quantity competition keeps some market power that price competition destroys.
You’ll learn: See how quantity-competing firms land between monopoly and perfect competition — keeping some market power that price competition would erase.
- Oligopoly & strategic interaction
- Quantity competition
- Cournot equilibrium
- Best responses & Nash equilibrium
Teacher guide
Students will learn to
- Experience quantity competition as one of two firms choosing output each round.
- See how each firm's output affects the market price for both.
- Place the Cournot outcome between the monopoly and perfectly-competitive benchmarks.
Before the session — ask
- If producing more pushed the price down for everyone, how much would you make?
- How is choosing your output different from choosing your price?
After the session — discuss
- Where did total output and price settle relative to monopoly and perfect competition?
- Did firms overproduce and hurt their own profits?
- Why does competing on quantity keep more market power than competing on price?
Timing
- Briefing & pairing3–5 min
- Five output rounds6–10 min
- Reveal & discussion8–10 min
Run it with your class
Students join with a code or QR — no account needed. Teachers start a session from the dashboard.