Cournot competition

Cournot competition is a type of economic competition where companies compete by choosing how much of their product (like books, food, or cars) to produce. The companies make their decisions about how much to produce based on how much their competitors are producing. Companies usually try to predict how much their competitors are going to produce, and then try to produce a little more than them, so they can make more money. They don't want to produce too much because then there won't be enough customers to buy their products.