How is Cournot’s model of oligopoly different from Bertrand’s model of oligopoly?

Cournot's model and Bertrand's model are two classic economic models used to analyze different aspects of oligopoly, which is a market structure characterized by a small number of interdependent firms. While both models aim to explain the behavior and outcomes of firms in an oligopolistic market, they do so through distinct assumptions and mechanisms. Let's delve into the key differences between Cournot's and Bertrand's models of oligopoly.

1. Basic Assumptions:

   • Cournot's Model: In the Cournot model, firms compete by choosing quantities of output. Each firm determines its production quantity based on the assumption that its competitors' quantities remain constant. This means that firms decide how much to produce before observing their rivals' decisions.
   • Bertrand's Model: In the Bertrand model, firms compete by setting prices. Each firm independently selects a price for its product, assuming that competitors' prices remain fixed. Consumers will choose the product with the lowest price, leading to a focus on price-setting strategies.

2. Nature of Competition:

   • Cournot's Model: Firms in the Cournot model compete in quantities. They are essentially quantity _____ _________ ___ ________ __________ _______ _______ _______.
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