Bertrand duopoly

Examples of Bertrand duopoly in the following topics:

• Duopoly Example

  • The Cournot model, in which firms compete on output, and the Bertrand model, in which firms compete on price, describe duopoly dynamics.
  • There are two principle duopoly models: Cournot duopoly and Bertrand duopoly.
  • The Bertrand model describes interactions among firms that compete on price.
  • The accuracy of the Cournot or Bertrand model will vary from industry to industry.
  • If capacity and output can be easily changed, Bertrand is generally a better model of duopoly competition.

• Oligopoly

  • Augustin Cournot (1801-1877), a French mathematician/economist developed the theory of monopoly and then considered the effects of two interdependent competitors (sellers) in a duopoly.