Overview

Bertrand competition


'Bertrand competition' can also refer to...

 

More Like This

Show all results sharing this subject:

  • Economics

GO

Show Summary Details

Quick Reference

Competition between two or more firms in an industry with product price as the strategic variable. This encourages the use of price-cutting as a form of competition. If the products produced by the firms are perfect substitutes, in the Nash equilibrium of the price-setting game, price equals marginal cost. The market equilibrium is then efficient even though the number of competing firms is limited. Bertrand duopoly is the special case of a market with two sellers engaged in price competition.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.