Consider a repeated Bertrand oligopoly with N ≥ 2 N ≥ 2 firms, played for T < ∞ T < ∞ periods. We know that the one-shot Nash equilibrium is pi = c ∀i p i = c ∀ i. For T T periods, we start at the last period and work backwards (backwards induction). In the last period, the game is a one-shot Bertrand game. Thus the equilibrium ...
Cournot equilibrium is the output level at which all firms in an oligopoly have no incentive to change their output. It is the point of intersection of the best-response curves of the rivals in a duopoly. Since both firms need to take the output decision simultaneously, we can find the equilibrium by solving reaction curves of both firms.