Cournot’s Achievement

Using the theory of arbitrary functions, Cournot provided a new answer to the question of the determination of the prices of commodities. His point of departure is monopoly: it is the simplest problem to solve because the entrepreneur must not deal with the reac­tions of competitors. He then extends his model to the case of a competition between several firms. “Infinite” competition thus appears as a limit, where the decisions of no firm can affect prices. He thus introduced all the notions still in use in microeconomics today.

Alain Beraud

See also:

Daniel Bernoulli (I); Jules Dupuit (I); Competition (III); Industrial organization (III); John Forbes Nash Jr (I); Uncertainty and information (III); Marie-Esprit-Leon Walras (I).