Bertrand competition

Bertrand Competition
Definition of Bertrand Competition: A Market structure where it is assumed that there are two firms, who both assume the other firm will keep prices unchanged.

Bertrand competition: A bidding war in which the bidders end up at a zero-profit price. See Bertrand game.
Contexts: game theory; IO
Bertrand duopoly: The two firms producing in a market modeled as a Bertrand game.

Main article: Bertrand competition
The Bertrand model is essentially the Cournot-Nash model except the strategic variable is price rather than quantity.[20]
The model assumptions are: ...

Bertrand competition
The assumption, sometimes assumed to be made by firms in an oligopoly, that other firms hold their prices constant as they themselves change behavior. Contrasts with Cournot competition.

See also: Oligopoly, Equilibrium, Substitutes, Supply curve, Elasticity