Compare and contrast the Cournot model with the Stackelberg model of Duopoly.

The Cournot and Stackelberg models are two essential frameworks in understanding duopolies, where two firms dominate a market. Both models analyze strategic interactions between firms, focusing on how their decisions regarding output and pricing impact profits and market equilibrium. However, they differ in their approaches to decision-making, leadership assumptions, and resulting market outcomes.

Cournot Model:

Assumptions:
1. Quantity Competition: Firms set quantities of output rather than prices.
2. Simultaneous Decision-Making: Both firms decide their output levels simultaneously.
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