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As a solution to the Bertrand paradox in economics, it has been suggested that each firm produces a somewhat differentiated product, and consequently faces a demand curve that is downward-sloping for all levels of the firm's price. An increase in a competitor's price is represented as an increase (for example, an upward shift) of the firm's demand curve. As a result, when a competitor raises price, generally a firm can also raise its own price and increase its profits. ==Calculating the differentiated Bertrand model== *q1 = firm 1’s demand, *q1≥0 *q2 = firm 2’s demand, *q1≥0 *A1 = Constant in equation for firm 1’s demand *A2 = Constant in equation for firm 2’s demand *a1 = slope coefficient for firm 1’s price *a2 = slope coefficient for firm 2’s price *p1 = firm 1’s price level pr unit *p2 = firm 2’s price level pr unit *b1 = slope coefficient for how much firm 2's price affects firm 1's demand *b2 = slope coefficient for how much firm 1's price affects firm 2's demand *q1=A1-a1 *p1+b1 *p2 *q2=A2-a2 *p2+b2 *p1 The above figure presents the best response functions of the firms, which are complements to each other. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Differentiated Bertrand competition」の詳細全文を読む スポンサード リンク
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