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Asymmetric Bertrand Duopoly. Two firms compete in Bertrand price competition by simultaneously choosing prices p1, p2. Firm i's production costs when it produces qi are
Asymmetric Bertrand Duopoly. Two firms compete in Bertrand price competition by simultaneously choosing prices p1, p2. Firm i's production costs when it produces qi are ciqi , which satisfy 0 c1 < c2. Market demand is given by Q = 100. If firm i charges the lowest price it captures the whole market (qi = 100), and if they charge the same price they evenly split the market demand (qi = 50)
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