cost, market size,... or dissuasive strategies. In an oligopoly, barriers to market entry and exit are high. The major barriers are: Patents; Technology; Economies of scale; Government regulation (e.g. limiting the issuance of licences); and Firm name recognition. The challenges of managing an oligopoly are complex: 1. Use quantity or price to prevent other enterprises from entering 2. Observe and assume how your competitors will respond When the market is in the equilibrium state of oligopoly, for other markets, every company can make the highest profit even if there are competitors. Every company can take into account the measures taken by competitors and assume that competitors will follow the original plan. The models most commonly used to study oligopoly in the field of economics are Cournot quantity competition and Bertrand price competition. These two models study and explain how enterprises respond to each other's strategic changes from the perspective of quantity and price respectively. Cournot quantity competition starts with the assumption that there are only two firms in the market. Each firm sets its own production numbers and assumes that all firms make the same plans. The cost structure is information that is publicly available to all companies, and the company adjusts the amount of production it produces based on what it thinks another company will produce. The advantage of cournot's quantitative competition model is that price and quantity are between monopoly (low output, high price) and competition (high output, low price). The two firms produce a stable Nash equilibrium, and neither wants to deviate from it alone. It has the disadvantage of assuming that the two players each develop a quantitative strategy for their product production, but this is unlikely to happen in practice. Because when there are only two players in the market, they react strongly to each other's changes in strategy, rather than just guessing and assuming. Bertrand price competition assumes that two firms produce the same product and both firms know the market demand curve. Assume a product price and assume that this price will satisfy all product needs. If firms compete on price rather than quantity, the market outcome will be: --If the goods are the same, the company charges different prices, and the consumer buys only from the company with the lowest price. -- If goods are similar and companies charge the same price, consumers don't care which company they buy from. If two