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Venecia Sapphire
on Dec 04, 2024

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Relative to the Nash equilibrium in the Cournot model, the Nash equilibrium in the Bertrand model with homogeneous products

A) results in the same output but a higher price.
B) results in the same output but a lower price.
C) results in a larger output at a lower price.
D) results in a smaller output at a higher price.
E) any of the above may result.

Nash Equilibrium

A state in strategic interactions where each participant's chosen strategy leaves them with no incentive to deviate, given the choices of others.

Cournot Model

A economic model describing an industry structure in which companies compete on the quantity of output they decide to produce, assuming their rivals' decisions are fixed.

Bertrand Model

An economic model of competition among firms, where firms choose prices rather than quantities to compete.

  • Learn about the assortment of oligopoly models and their ability to project outcomes concerning prices and quantities.
  • Discuss the factors that enable oligopoly markets to arrive at competitive conclusions.
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Ritvik ThakurDec 09, 2024
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