Bertrand Competition | Microeconomics by Game Theory 101

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  • เผยแพร่เมื่อ 23 ธ.ค. 2024

ความคิดเห็น • 14

  • @hannahweber7585
    @hannahweber7585 3 ปีที่แล้ว +4

    What about a case when firms aren't perfectly identical but have the same product and costs (like different geographical locations of gas stations) and a higher price does not guarantee no sale?

  • @DA0705
    @DA0705 3 ปีที่แล้ว +1

    thanks a lot, it really helps me to understant it

  • @lolaritter7518
    @lolaritter7518 3 ปีที่แล้ว +4

    It’s like a race to the bottom

  • @PunmasterSTP
    @PunmasterSTP 2 ปีที่แล้ว +1

    Bertrand? More like "Bro, thanks so much for helping us understand!"

  • @JMRG2992
    @JMRG2992 3 ปีที่แล้ว +6

    why i cannot find anywhere a video showing different demands, different prices. context. Maximization of each firms, no examples of this nowhere. it's almost incredible.

    • @HN-bv7li
      @HN-bv7li 3 ปีที่แล้ว +2

      no because it is assumption of bertrand competition. Homogeneous goods and symmetric prices.

  • @Markd315
    @Markd315 4 ปีที่แล้ว +3

    I can think of one way (re end of video):
    Product differentiation

  • @starrychloe
    @starrychloe 4 ปีที่แล้ว +4

    The solution is marketing. If companies can make you feel better about their brand, you'll be more likely to pick them, even if they are a commodity product like fast food burgers or cell phone service or gasoline.

  • @mdjuhaeradittya
    @mdjuhaeradittya ปีที่แล้ว

    Thanks a lot

  • @revimfadli4666
    @revimfadli4666 5 หลายเดือนก่อน

    Very reminiscent of Vickrey auction

  • @hellojello3515
    @hellojello3515 2 ปีที่แล้ว +1

    It looks like you've made a mistake. Pd-C does not measure firms profit at the Pd price. To measure profit you need to know the quantity which it will be able to sell at Pd (Q at Pd, or Q(Pd)), which is the whole market demand at that price. So, the expession should look something like this:
    Q(PD)*(Pd-C) > A*(Q(P1)*(P1-C)),
    Or am I missing something?

  • @erinagro8741
    @erinagro8741 2 ปีที่แล้ว +1

    where is the next video in this series?

    • @Gametheory101
      @Gametheory101  2 ปีที่แล้ว +2

      This is the playlist: th-cam.com/play/PLKI1h_nAkaQppKwAw3BuwMwe0IvmZ5oei.html

  • @revimfadli4666
    @revimfadli4666 11 หลายเดือนก่อน

    Sounds like collusion between p1 and p2 could ensure either one gets a profit