Topic
Bertrand–Edgeworth model.
oligopoly price-setting model considering a homogeneous product and a limit to the output of firms which are willing and able to sell at a particular price
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About Bertrand–Edgeworth model
In microeconomics, the Bertrand–Edgeworth model of price-setting oligopoly explores what happens when firms compete to sell a homogeneous product but face limits on how much they can supply. Unlike in the standard Bertrand competition model, where firms are assumed to meet all demand at their chosen price, the Bertrand–Edgeworth model assumes each firm has a capacity constraint: a fixed maximum output it can sell, regardless of price. This constraint may be physical or may depend on price or other conditions.
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