Monopolies Capped: Consumers and Producers Gain from Optimal Pricing
The article explores how companies compete in markets by juggling prices and production levels to earn profits. Researchers studied a specific type called the Cournot model and discovered various outcomes for profits and customer benefits based on how much consumers are willing to pay. By looking at demand and pricing, they determined different ways companies and customers benefit, along with potential losses from inefficient pricing strategies. This helps understand how market dynamics affect businesses and consumers.