What are the problems with the Bertrand model? Investigate other ways economists model short-run competition between firms. (1500 word essay)
Can anyone suggest how to structure this essay. I already have a general idea, just need a little more help to get started.
What are the problems with the Bertrand model? Watch
- Thread Starter
- 02-12-2010 01:03
- 02-12-2010 15:19
I would look at the assumptions between the different models. They are the key to why the models are different in the first place. So I would look at what the different assumptions are, and compare how they lead to different outcomes. Then I would maybe evaluate which assumptions are more likely to be true, and if this depends on the market.