Editing Oligopoly (section)

==== ''Cournot-Bertrand model'' ====
The Cournot model and Bertrand model are the most well-known models in oligopoly theory, and have been studied and reviewed by numerous economists.<ref name="Ma, Wang">{{cite journal |last1=Ma |first1=Junhai |last2=Wang |first2=Hongwu |date=2013 |title=Complexity Analysis of a Cournot-Bertrand Duopoly Game Model with Limited Information |journal=Discrete Dynamics in Nature and Society |volume=2013 |pages=6 |doi=10.1155/2013/287371 |doi-access=free}}</ref> The Cournot-Bertrand model is a hybrid of these two models and was first developed by Bylka and Komar in 1976.<ref name="Tremblay">{{cite journal |last1=Horton Tremblay |first1=Carol |last2=Tremblay |first2=Victor J. |date=2019 |title=Oligopoly Games and The Cournot–Bertrand Model: A Survey |journal=Journal of Economic Surveys |volume=33 |issue=5 |pages=1555–1577 |doi=10.1111/joes.12336 |s2cid=202322675}}</ref> This model allows the market to be split into two groups of firms. The first group's aim is to optimally adjust their output to maximise profits, while the second group's aim is to optimally adjust their prices.<ref name="Ma, Wang" /> This model is not accepted by some economists who believe that firms in the same industry cannot compete with different strategic variables.<ref name="Tremblay" /> Nonetheless, this model has been applied and observed in both real-world examples and theoretical contexts.

In the Cournot model and Bertrand model, it is assumed that all the firms are competing with the same choice variable, either output or price.<ref name="Tremblay" /> However, some economists have argued that this does not always apply in real world contexts. Economists Kreps and Scheinkman's research demonstrates that varying economic environments are required in order for firms to compete in the same industry while using different strategic variables.<ref name="Tremblay" /> An example of the Cournot-Bertrand model in real life can be seen in the market of alcoholic beverages.<ref name="Tremblay" /> The production times of alcoholic beverages differ greatly creating different economic environments within the market.<ref name="Tremblay" /> The fermentation of distilled spirits takes a significant amount of time; therefore, output is set by producers, leaving the market conditions to determine price.<ref name="Tremblay" /> Whereas, the production of brandy requires minimal time to age, thus the price is set by the producers and the supply is determined by the quantity demanded at that price.<ref name="Tremblay" />{{Clarify|date=July 2023|reason=unsure what this paragraph is trying to say}}