Imperfect Competition Models
- Primary authors:
Categories: CategorySummary CategoryMicro CategoryImperfectCompetition
Homogenous Products
Monopoly
See Monopoly_Model
Cournot Model
See Cournot_Model.
Bertrand Model
In the Bertrand model firms simultaneously set **prices**. Firms experience no quantity constraints, and thus the firm with the lowest price supplies the entire market. If two firms tie on price they split the market. Under this framework the standard result is that outcomes are the same as in a competitive market[^2], that is price equals marginal cost and firms make zero profits.
[^2]: Albeit Under some strong assumptions viz. constant returns to scale and continuous prices.
Stackleberg Competition
See Stackelberg_Model.
Differentiated Products
See Horizontal_Product_Differentiation_Model and Vertical_Product_Differentiation_Model.
Also Locational_Product_Differentiation and Monopolistic_Competition.
