Game Theory 14: Cournot Duopoly and Iterated Elimination of Strictly Dominated Strategies

In this video we learn how to use iterated elimination of strictly dominated strategies outside of a matrix game. We find the Nash equilibrium of Cournot duopoly, and use the iterated elimination process to give some intuition for Cournot's claim that firms who attempt to deviate jointly from the Nash equilibrium will find that individual profit-maximizing adjustments to the joint deviation will drag them right back to the Nash equilibrium. Please leave your questions in the comments.