Bertrand Duopoly - Reaction Function

A reaction function or the function of the best response is illustrated for the Bertrand Duopoly of the special case Q(i) = 2 - P(i) + P(j)/2 were P(i) is the price chosen by the firm i and Q(i) is the corresponding optimal quantity of production of the firm i.

 

Jüri Eintalu

 
Resource Type
Activity
Tags
bertrand  duopoly  function  game  reaction  theory 
Target Group (Age)
18 – 19+
Language
English
 
 
 
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