Imperfect competition in output markets
5 important questions on Imperfect competition in output markets
What is the model setup of the betrand model?
What is a nash-bertrand equilibrium?
What are the assumptions of the bertrand model?
2. firms compete by simultanuously choosing the price
3. firms are not capacity constrained
4. consumers have perfect info
5. zero transaction costs
6. There is 1 round of competition
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What is the bertrand paradox?
What are the assumptions of the stackelberg model?
2. firms compete by choosing sequentically the q
3. consumers have perfect information &
4. zero transaction costs
5. all goods sell for the same price
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