The Cournot adjustment model, first proposed by Augustin Cournot in the context of a duopoly, has players select strategies sequentially. In each period, a firm selects the action that is
its best response to the action chosen by the competing firm in the previous period. Cournot noted that this process converges to the Nash equilibrium
in some duopoly games in which firms sequentially select output. Cournot learning can be seen as an extreme form of fictitious play in which each firm assumes that its competitor is using the same strategy in every period which is equivalent to the one most recently used.
updated: 15 August 2005
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