In the ________, two duopolists compete by simultaneously selecting price.
A) Cournot model
B) Nash model
C) Bertrand model
D) kinked-demand model
E) none of the above

Question

Quizplus · Accepted Answer

In the Cournot model, duopolists compete by simultaneously selecting quantity. In the Nash model, each player considers the other player's choices and selects their best strategy accordingly. The kinked-demand model assumes that one firm will match any price changes made by the other firm, resulting in stability rather than competition. The Bertrand model is the only one that involves duopolists competing through simultaneous price selection. Therefore, the correct answer is C.

In the ________, Two Duopolists Compete by Simultaneously Selecting Price