The Nash equilibrium solution to this situation is known as the Bertrand equilibrium.
The Nash equilibrium solution to this situation is known as the Bertrand equilibrium. If one of the firms acts as a leader, this produces the Stackelberg equilibrium, in which the output is higher than the original solution to this problem, known as the Cournot equilibrium, whose creator initially had a thought experiment involving access to two natural springs. For 10 points, what is this economic situation, a special case of oligopoly in which only two firms are selling in a market?
The Nash equilibrium solution to this situation is known as the Bertrand equilibrium.
{duopoly} [prompt on oligopoly before it is read]