  We propose an empirical framework for asymmetric Cournot oligopoly with
private information about variable costs. First, considering a linear demand
for a homogenous product with a random intercept, we characterize the Bayesian
Cournot-Nash equilibrium. Then we establish the identification of the joint
distribution of demand and firm-specific cost distributions. Following the
identification steps, we propose a likelihood-based estimation method and apply
it to the global market for crude-oil and quantify the welfare effect of
private information. We also consider extensions of the model to include either
product differentiation, conduct parameters, nonlinear demand, or selective
entry.
