A Demonstration of an Application of the Bertrand Network: Guessing the Distribution of Buyers Within the Market

Murillo Henrique Pedroso Ferreira () and João Paulo Pereira ()
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Murillo Henrique Pedroso Ferreira: Polytechnic Institute of Bragança
João Paulo Pereira: Polytechnic Institute of Bragança

A chapter in Information Systems for Industry 4.0, 2019, pp 115-128 from Springer

Abstract: Abstract Bertrand and the Cournot model are one of the most used model for modeling competition between companies. This paper presents a work-in-progress that studies the application of the recently developed Bertrand Network model by using it in a reverse manner: first it is considered that firms are competing in equilibrium, then, after analyzing how companies are choosing prices, it is calculated which distribution of buyers would lead to that equilibrium. An unreal example is presented to help to understand the model. Furthermore, a formula is suggested to expand the networked model to allow a mix of duopolies and oligopolies.

Keywords: Nash equilibrium; Bertrand network; Market competition; Expanded Bertrand network; Market expansion (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnichp:978-3-030-14850-8_8

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DOI: 10.1007/978-3-030-14850-8_8

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