Cournot Tariff Model with 2 Firms

This variant includes two firms serving a highly concentrated domestic market. Firms maximize profits in a Cournot-style competition. They choose the quantity that they will sell taking the equilibrium quantities of their competitors as given. The model can simulate the effects of a tariff change on prices, quantities, and profits in the market.

Model Details:

• Structural Equations for PE Models in Group 2 U.S. [PDF] Pages(8 ) 205 KiB

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Model Contacts:

• pemodeling@usitc.gov

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Download Model:

• cournot tariff model with 2 firms xlsx [XLSX] 32 KiB

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Download Model LaTex:

• Structural Equations for PE Models in Group 2 U.S. [TXT] B

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Recommended Citations:

Riker, D. and Schreiber S. (2020). Structural Equations for PE Models in Group 2 (Imperfect Competition). U.S. International Trade Commission. Trade Policy PE Modeling Portal.

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