Is there a first-mover advantage in the Bertrand duopoly model with homogenous products?

Select one:

Yes, first-movers may have an advantage, but it depends on the model assumptions.

No, the second-mover would be able to set a slightly lower price and capture the full market share.

Yes, first-movers always hold the advantage over other firms.

No, first-movers cannot choose a profit maximizing quantity because the second-mover can always produce a bit less and earn higher profits.

2.Consider the following payoff matrix for a game in which two firms attempt to collude under the Bertrand model:

30 Firm 2's Reaction Curve 15 10 B 7.5 A Firm I's Reaction Curve 75 10 15 30 07