A Dynamic Model of Cournot Competition for an Oligopolistic Market

This paper studies firms’ dynamic interaction in a Cournot market. In each period of the game, firm decides whether to make stochastic positioning investment (establishing or maintaining its position market competition). The demand is also (high low). By adopting symmetric Market perfect Nash equilibrium, firms choose strategies maximize discounted present value cash flow. considering cases with one, two, and three active market, respectively, we stage game outcome, show transition probabilities, find steady state system, discuss speed convergence. Our work allows for two types uncertainty interactions, which contribute oligopoly literature.