The Bertrand and Cournot models are both for analysing non-competitive oligopolies and for each of these models 5 strong assumptions are made (Oligopoly, online),
1. Consumers are price takers
2. All firms produce homogenous products
3. There is no entry to the industry
4. Firms collectively have market power (so can set price above MC)
5. Each firm can either set its price or output (not other variables such as advertising)
These assumptions form the basis of both the Cournot and Bertrand... [continues]
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(2008, 11). Which of the Cournot and Bertrand Models of Oligopoly More Realistically Reflect Firm Behaviour?. StudyMode.com. Retrieved 11, 2008, from http://www.studymode.com/essays/Which-Cournot-Bertrand-Models-Oligopoly-More-177367.html
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