Editing Edgeworth paradox (section)

==Example==
Suppose two companies, A and B, sell an identical commodity product, and that customers choose the product solely on the basis of price.  Each company faces capacity constraints, in that on its own it cannot satisfy demand at its zero-profit price, but together they can more than satisfy such demand.

The Edgeworth Paradox assumption of the [[Cournot model]] is as follows:
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1. The production capacity of the two manufacturers is limited. Under a certain price level, the output of a particular [[Oligopoly]] cannot meet the market demand at this price level so that another manufacturer can obtain the residual market demand.
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2. In a certain period, two prices can exist in the market at the same time.
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3. When a particular [[oligopoly]] chooses a certain price level, another oligopoly will not immediately respond to the price.<ref>{{cite book |last1=Edgeworth |first1=Francis Ysidro |title=Papers relating to political economy |date=1925 |publisher=Royal economic society by Macmillan and Company, limited |url=http://gallica.bnf.fr/scripts/ConsultationTout.exe?O=n024378}}</ref>