Why are the Cournot and Bertrand models considered static? What aspects of real world behavior might be

Question:

Why are the Cournot and Bertrand models considered static? What aspects of real world behavior might be missing in static models?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics of Strategy

ISBN: 978-1118319185

6th edition

Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer

See More Books

Question Posted: Sep 13, 2017 12:53 AM

See More Questions

What do the Cournot and Bertrand models have in common? What is different about the two models?
Why is the intersection between firms' best-response functions in Figure 12.2 for the Cournot model or 12.3 for the Bertrand model with differentiated products a graphical illustration of the Nash...
Explain the difference between the Bertrand model of oligopoly and the Cournot model of oligopoly. In a homogeneous products oligopoly, what predictions do these models make about the equilibrium...
All of the following companies manufacture toasters. The following costs were incurred by each company during September: Required: 1. What is the total conversion cost for Warner Co.? 2. What is the...
Which is stronger, the C = O bond in an ester (1735 cm1) or the C = O bond in a saturated ketone (1715 cm1)? Explain.
Suppose that society decided to reduce consumption and increase investment. a. How would this change affect economic growth? b. What groups in society would benefit from this change? What groups...
Knowing the culture of the organizational buying center can help salespeople identify what type of approach to use. For example, if you know that a firm has a central decision maker who seeks input...
Brad Timberlake is known throughout the world for his insights on effective and efficient time management. Brad has authored several best-selling self-help books (also available in audio and video...
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction house sold a painting for a price of $1,010,000. Unfortunately for the...
Howies Bakery is one of the most popular bakeries in town, and the favorite at Howies is French bread. Each day of the week, Howies bakes a number of loaves of French bread, more or less according to...
An incumbent is considering expanding its capacity. It can do so in one of two ways. It can purchase fungible, general purpose equipment and machinery that can be resold at close to its original...
An article on price wars by two McKinsey consultants makes the following argument. That the (tit-for-tat) strategy is fraught with risk cannot be overemphasized. Your competitor may take an...
Prepare a simple statement of comprehensive income for Yoshi Corporation using the following information: For the year ended June 30, 2017 Loss for the year is $25,000 Gain on equity investments...
Question 7 Two objects, of masses 3 and 4 kg, are hung from the ends of a stick that is 70 cm long and has marks every 10 cm, as shown above. If the mass of the stick is negligible, at which of the...
Since they do not have enough saved, Rachel and John would like to consider retiring later. Create a new timeline and recalculate all of the relevant values to determine at what age Rachel and John...
Problem 6 Find the partial derivative with respect to x for the following functions: (a) p = 56 (b) y(x)=56-4x (c) m = r (d) q= x (e) f(x) =x3 (f) g(x,y) = xy 2 (g) h(x,y) = Ax1/2y1/2, where A is a...
Consider the information in the file named Cost Functions of the Firm (also presented above). Please read that file carefully before answering this and the following questions. The fixed cost of...
On January 1, 2022, Monica Company acquired 80 percent of Young Company's outstanding common stock for $872,000. The fair value of the noncontrolling interest at the acquisition date was $218,000....
The following transactions relate to the issue of shares by Tindale Ltd. Record the above transactions in the appropriate journals, and prepare a note to the accounts showing the capital structure at...
In Problem use absolute value on a graphing calculator to find the area between the curve and the x axis over the given interval. Find answers to two decimal places. y = x 3 ln x; 0.1 x 3.1
Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished...
Go back to the model with firm performance differences in a single integrated market Now assume that a new technology becomes available. Any firm can adopt the new technology, but its use requires an...
In the chapter, we described a situation where dumping occurs between two symmetric countries. Briefly describe how things would change if the two countries had different sizes. a. How would the...
Provide a graph chart or data with sample numbers indicating Valuing Stocks and Bonds?
I just need help with part b. It says that the answer is not complete and some are wrong. So can you kindly fix it for me and give me the full answers as it says the answer is "not complete". Thank...
What is Coke's average ownership percentage in its equity method investments? Goodwill is 7000 Calculate the firm's current ratio (current assets/current liabilities). Calculate the current ratio...

Why are the Cournot and Bertrand models considered static? What aspects of real world behavior might be

Question:

Step by Step Answer:

In the Cournot and Bertrand models of duopoly each ...View the full answer

Economics of Strategy

Students also viewed these Economics questions