Is there a first-mover advantage in the Bertrand duopoly model with homogenous products?
A) Yes, first-movers always hold the advantage over other firms.
B) Yes, first-movers may have an advantage, but it depends on the model assumptions.
C) No, first-movers cannot choose a profit maximizing quantity because the second-mover can always produce a bit less and earn higher profits.
D) No, the second-mover would be able to set a slightly lower price and capture the full market share.
D
Economics
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A) total fixed cost B) marginal cost C) average variable cost D) average fixed cost E) total cost
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Which of the following is an example of an oligopolistic market structure?
a. public utilities b. air transport industry c. liquor retailers d. wheat farmers e. none of the above
Economics