The assumption, sometimes assumed to be made by firms in an oligopoly, that other firms hold their prices constant as they themselves change behavior. Contrasts with Cournot competition. Both are used in models of international oligopoly, but Cournot competition is used more often.
Related information about Bertrand competition:
- Bertrand competition - Wikipedia, the free encyclopedia
Bertrand competition is a model of competition used in economics, named after Joseph Louis François Bertrand (1822-1900). It describes interactions among ...
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Definition of Bertrand competition: Market situation in which each firm and its competitors make their output and pricing decision on the assumption that their ...
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Bertrand competition, where the firms compete on prices, and Cournot competition, where they compete on quantity. The former always leads to a socially- ...