Bertrand duopoly

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Bertrand Duopoly

One of two major models of how duopolies operate. In the Bertrand model, two companies compete with each other for the lowest possible price, resulting in perfect competition. Bertrand duopoly is applicable in many circumstances but it does not express duopolistic behavior perfectly. See also: Cournot model.

Bertrand duopoly

see DUOPOLY.
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The experimental literature on the asymmetric Bertrand model is thin.
A Bertrand model of pricing and entry", Economics Letters 41, 199-206.
2008), suggest that the hypothesis should not be rejected: it was shown that 82% of students who were taught the Bertrand model using e-learning techniques got full 5 points, while only 55% of the non-e-learning students had the same score.
Bertrand model of Hegji and Moore resulting in service levels, and ultimately prices, that are inefficiently high from a social point of view.
Sharkey, William y David Sibley (1993): "A Bertrand model of pricing and entry"; Economics Letters 41, 199-206.
The Bertrand model still supports the most competitive outcome, as the rivals cannot restrict output to raise price under a simple Bertrand structure.
In a Bertrand model, firms set prices, let the market set the quantities, and again ignore responses.
The Bertrand model also includes two different pricing schemes: one for an ISP with traditional unlimited access, flat rate pricing for BE, and another for an ISP with a two-part tariff consisting of a fixed rate for BE, plus a usage-sensitive pricing strategy for QoS.
The Bertrand model predicts that in the price-setting market, if one firm enters, it sets the monopoly price; if more than one firm enters, they all set prices equal to marginal cost.
This characteristic of the differentiated price Bertrand model is well known, its source being evident in the Bertrand reaction function.
substitutes) in the Bertrand model of differentiated products need not raise all prices and, in fact, can increase consumer welfare.
We chose the Bertrand model, and the limit pricing that is implied by the model, for part of our analysis because it is a standard duopoly model and it is tractable.