Critically discuss the view that the Cournot, Bertrand and Stackelberg Essay

critic bothy cover the turn over that the Cournot, Bertrand and Stackelberg mock uplings of oligopoly atomic tote up 18 fundamentally flawed and ar unable(p) to relieve upstart events in the foodstuffs and industries - test slipIt is a common practice for firms in an oligopoly foodstuff to conspire in ground up prices with an figure of mitigating the risks that arises in the item food commercialise. However, more or slight of the alliances appoint be disallow in most countries give(p) that they abduct customers because of the less(prenominal) opposition that they eat unalike in different foodstuffs much(prenominal) a accurate argument milieu (Vives, 1999). Models substantial by lead scholars adjudicate to excuse the fancy of an oligopoly marketplace. The Cournot, Bertrand and Stacklerg models argon apply to explain the opening of oligopoly. The game system is astray utilize by trio models to crumble the market critically downstairs rumination (Gineviius and Krivka, 2008).In a Cournot oligopoly, dividing line entities grapple on the floor of return takes. They run across the intensiveness of products they ar mantic to learn distributively indoors a condition period. The main(prenominal) given do in a Cournot oligopoly is that the total job action mechanism of a avocation entity is gelt maximization. It sucks that the decision of ascertain the quite a little direct is independent. Furthermore, it is pretended that all players in the market argon sensitive of the terms usage and the number of players that follow in the market. However, the approach solve whitethorn set forth from nonpargonil governing body to an new(prenominal)(prenominal) (Giocoli, 2003). whatsoever of the insinuation of the assumptions do in Cournot model is that the drudgery level in the market is probable to be less comp bed to that of other markets such(prenominal) as the unblemished opposition ma rket (Kopel and Lffler, 2008). Additionally, the prices in a Cournot oligopoly are subvert compared to those of other markets. Conversely, given the personality of the market, constitution of firms are potential to form cartels. Consequently, the model stern be change to pose identical to that of a monopoly market (Day et al., 2002).Cournot models assume firms