Cournot examined the performance consequences if colluding firms cheat by adjusting the quantity of their output and let market forces determine prices.

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Cournot's model indeed examines the outcomes in a duopoly where firms decide on the quantity of output to produce independently, leading to a situation where market forces determine the price. This model implicitly considers the consequences of firms deviating from collusive agreements by altering their output levels.

Cournot Examined the Performance Consequences If Colluding Firms Cheat by Adjusting