N. IWASZCZUK, I. KAVALETS
A b s t r a c t . The paper presents a model describing the behavior of participants of the oligopolistic market. Economic model of the oligopoly – a generalized Cournot-Puu model is constructed. Notion of Cournot equilibrium is introduced. Study on the stability of the equilibrium point of the constructed model is described. As an example, the model of duopoly is considered in detail.
Key words: oligopoly, duopoly, a generalized Cournot- Puu model, Cournot equilibrium, linearization of the system, stability, Routh-Hurwitz procedure.