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Bertrand Model
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11:53
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William Spaniel
Bertrand Competition | Microeconomics by Game Theory 101
Under Bertrand competition, firms compete over the price of the good produced. This lecture investigates what happens under a duopoly where firms have identical marginal costs. The only equilibrium pricing strategies require both firms to choose the price that exactly offsets the marginal cost of production. As a result, firms earn no profit in ...
48.4K views
Aug 3, 2020
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