Consumers Win Big as Cournot Competition Boosts Welfare
In this research, they studied how two companies compete in the market: one where the firms make decisions on how much to invest in product development, and the other where they don't. They found that when companies decide to improve their products, the market might benefit more if they sell their products differently (like how many they make and how much they cost) rather than if they try to outdo each other directly. This means that in certain situations, customers could get better deals and the overall well-being of the market could improve if companies focus on product quality and price rather than competing too aggressively.