What is cournot nash solution

Answer 1

The Cournot–Nash solution is a solution concept in game theory for a non-cooperative game with two players. It is named after Antoine Augustin Cournot and John Forbes Nash. The solution concept is based on the players' expected utility maximization. It is the unique subgame perfect Nash equilibrium of the game. In the Cournot–Nash solution, each player chooses a quantity to produce, which maximizes their profit given the quantity chosen by the other player. The resulting equilibrium is a pair of quantities, one for each player, where each player's quantity maximizes their profit given the other player's choice.