Conjectural variations strategies in accelerated cournot games

A family of constant conjectural variations strategies is defined and examined in the natural context of infinitely repeated Cournot duopoly games with discounting. It is shown that any pair of linear reaction functions in the family gives rise to a unique pair of quantities in stationary equilibrium. As the conjectures and discount parameter vary, the sum of the stationary quantities will vary anywhere between the competitive and the monopoly outcomes. Equilibrium is strongly stable and credible (in the sense of exhibiting a variation of Selten's subgame perfection) provided that firms can react quickly enough to one another's actions.