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

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

Step by Step Solution

★★★★★

3.47 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

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

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1313-B-E-M-E(8858).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

What do the Cournot and Bertrand models have in common? What is different about the two models?

Q:

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...

Q:

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...

Q:

Chapter 2 User-Centered Systems Design: A Brief History Abstract The intention of this book is to help you think about design from a user-centered perspective. Our aim is to help you understand what...

Q:

Controller, Judy Koch, in a recent speech said, "I rarely see a real variable cost or a truly fixed cost." What did she mean? Include in your response an explanation of the difference in behavior of...

Q:

1. Evaluate the often tried approach of adopting past solutions to similar problems encountered today? Is this a form of linear thinking or not? 2. Why is linear thinking dangerous? 3. Whether the...

Q:

The article below that discusses marketing research and its role within an organization. Address the following points in your essay: Summarize the article by discussing the main points of the...

Q:

Attached is Accounting assignment along side recommended readings to answer certain questions. Thank you Assignment 1 Problem 1 15 points Reading - W. L. Ferrara, Cost/Management Accounting: The 21st...

Q:

This chapter presents students and early career executives with a sound understanding of theory. Theory is explored in terms of both anatomy (parts of the whole) and physiology (relationships with...

Q:

Introduction-1-The OM research community has a long tradition of dynamic modeling, going back at least to the pioneering work of Forrester (1958) and Holt et al. (1960). These innovators recognized...

Q:

You are the Audit Manager of Mole and Co and are currently planning the audit of your existing client, Ratty Ltd, whose year end was 31 December 2021. Ratty is a pharmaceutical company that...

Q:

List and explain three widely used improvement strategies.

Q:

Kachi is applying for individual critical illness insurance coverage. He is 6 7 years old and in good health even though he is a smoker. Kachi is retired from his job as a foreman for a construction...

Q:

2.9 Apple sold its iPhone to AT&T, which in turn sold it to the final consumers. Suppose that the consumers constant elasticity demand function for the iPhone was Q = Ap-, Apples marginal cost of...

Q:

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...

Q:

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...

Q:

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...

Q:

Correct Computation:- Consider Example 14.6.1. Give the estimator for the B effect if all eight treatment combinations were run. Give the estimator for this effect if only the treatment combinations...

Q:

Need help in the following Policy FK1 cust_id Policy payment is_fault PK policy_id PK id Policy holder PK,FK2 policy id policy_num PK,FK1 pay id type PK id coverage PK,FK1 policy id date term_price...

Q:

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 18 percent. a-1. Compute the IRR for both...