Differentiated Bertrand competition
Overview
Bertrand paradox (economics)
In economics and commerce, the Bertrand paradox—named after its creator, Joseph Bertrand—describes a situation in which two players reach a state of Nash equilibrium where both firms charge a price equal to marginal cost. The paradox is that in reality, it usually takes a large number of firms to...
in economics, it has been suggested that each firm produces a somewhat differentiated product, and consequently faces a demand curve that is downward-sloping for all levels of the firm's price.
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