duopoly doubt

Posted by ritu on Jun 21, 2012; 5:19am
URL: http://discussion-forum.276.s1.nabble.com/duopoly-doubt-tp7578431.html

hi
in cournot we say that outcome when best response functions intersect is nt pareto efficient....how can we have a situation where there is a tamgency btwn iso profit curvrs so that its pareto efficient..???does this require collusive behaviour on part of both firms so they both produce lower output nd higher price is attained?!??