Kennisconsult

 - concurrentiemodel van Bertrand
 - Bertrand competition

Een concurrentiemodel dat genoemd is naar de maker (Joseph Louis Bertrand). Het model beschrijft de ontwikkelingen in de markt van homogene goederen bij volledige concurrentie.
Bron: Kennisconsult


Economic theorists usually model the interaction of oligopolistic firms as a game. In an oligopoly game, the players are the firms, which interact choosing business strategies. The Bertrand game serves as an important benchmark model for oligopolistic interaction. In the model, a firm’s business strategy consists of the choice of the price of that good. In the case of perfectly Homogeneous goods, the Bertrand model predicts that oligopolistic firms make no profit. The reason for this is that consumers only buy the good from the cheapest firm, as the good is Homogeneous. The firms will be involved in ‘a race to the bottom’ to attract all consumers, resulting in a price that leaves them no profit. This finding is called ‘the Bertrand paradox’, as even in a seemingly very concentrated industry of only two firms, the firms cannot exploit market power as they do not make any profits. The following anecdote shows how harmful Bertrand competition might be for firms:11 “During a price war between two petrol stations in Winnipeg, Mr Hafy Carnet reduced his gasoline price to from 50 cents to 10 cents a litre, whereupon Mrs Sharon Willard, his neighbour, cut her gasoline to 1.6 cents a litre. Police were called when, having lost three hundred customers, Mr Carnet “who completely forgot the rules of the market”, announced through a loud-hailer that he would pay 3 cents to anyone who filled their tank at his pumps.”
source: http://www.cpb.nl/nl/pub/cpbreeksen/document/29/doc29.pdf

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