Imperfect_Competition_Models - Atlas of Economic Models
 

Imperfect Competition Models

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.