The Bertrand Paradox In Bertrand model, with only 2 firms, market is perfectly

competitive (P=MC)! Why?

- No capacity constraint: each firm can satisfy the entire market on its own

- No product differentiation: consumers will switch products based on small price differences

- No search cost: consumers do not need to pay to find out the prices of different sellers

how to understand "search cost"?could you give an example to compare search cost with no search cost, as for consumers and stores respectively