Bertrand Price Undercutting: A Brief Classroom Demonstration
نویسندگان
چکیده
منابع مشابه
Bertrand Price Undercutting: a Brief Classroom Demonstration
Acknowledgement: I appreciate the constructive comments of Andrew Austin and three anonymous referees for the Journal of Economic Education. Abstract I present a brief classroom demonstration illustrating Bertrand price undercutting. The classroom demonstration is appropriate for Micro Principles, and both intermediate and upper level undergraduate, as well as graduate classes in micro, Industr...
متن کاملA Simple Classroom Demonstration of Natural Convection
This article explains a simple way to demonstrate natural convection, such as from a lit candle, in the classroom using an overhead projector. The demonstration is based on the principle of schlieren imaging, commonly used to visualize variations in density for gas flows.
متن کاملBertrand ' s price competition in markets with fixed costs
We analyze Bertrand’s price competition in a homogenous good market with a fixed cost and an increasing marginal cost (i.e., with variable returns to scale). If the fixed cost is avoidable, we show that the non-subadditivity of the cost function at the output corresponding to the oligopoly break-even price, denoted by D(pL(n)), is sufficient to guarantee that the market supports an equilibrium ...
متن کاملThe Dynamics of Bertrand Price Competition with Cost-Reducing Investments†
We present a dynamic extension of the classic static model of Bertrand price competition that allows competing duopolists to undertake cost-reducing investments in an attempt to “leapfrog” their rival to attain low-cost leadership — at least temporarily. We show that leapfrogging occurs in equilibrium, resolving the Bertrand investment paradox., i.e. leapfrogging explains why firms have an ex a...
متن کاملSecond-mover advantage and price leadership in Bertrand duopoly
We consider the issue of firstversus second-mover advantage in differentiated-product Bertrand duopoly with general demand and asymmetric linear costs. We generalize existing results for all possible combinations where prices are either strategic substitutes and/or complements, dispensing with common extraneous and restrictive assumptions. We show that a firm with a sufficiently large cost lead...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2003
ISSN: 1556-5068
DOI: 10.2139/ssrn.317865