A duopoly is a type of oligopoly with two producers of a good in a market.
We mainly analyse three types of duopolies:
- The Cournot duopoly model, in which two firms simultaneously choose how much to produce.
- The Bertrand duopoly model, in which two firms simultaneously set the prices for which they want to sell their products.
- The Stackelberg duopoly model, in which two firms sequentially set the prices, first the leader and then the follower.
We have programmed versions with symmetric, asymmetric and other costs for each of these duopolies, so that students can observe the effect of a company which is more efficient than its competitors in the market.