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Percorrer ESEIG - UTC Matemática por assunto "Bertrand model"
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- Maximum-revenue tariff under Bertrand duopoly with unknown costsPublication . Ferreira, Fernanda A.; Ferreira, FlávioThis paper considers an international trade under Bertrand model with differentiated products and with unknown production costs. The home government imposes a specific import tariff per unit of imports from the foreign firm. We prove that this tariff is decreasing in the expected production costs of the foreign firm and increasing in the production costs of the home firm. Furthermore, it is increasing in the degree of product substitutability. We also show that an increase in the tariff results in both firms increasing their prices, an increase in both expected sales and expected profits for the home firm, and a decrease in both expected sales and expected profits for the foreign firm.
- Maximum-revenue tariff with different roles in a price-setting competitionPublication . Ferreira, Fernanda A.; Ferreira, FlávioIn this paper, we study an international duopoly market where firms set prices. The model has two stages. In the first stage, the home government chooses an import Tariff to maximize the revenue. Then, the firms engage in a price-setting competition. We study three different roles: (i) simultaneous decisions (Bertrand model); (ii) sequential decisions with home firm as the leader; and (iii) sequential decisions with home firm as the follower. We compare the results obtained in the three different ways of moving on the decisions make of the firms.
- Uncertainty on a Bertrand duopoly with product differentiationPublication . Ferreira, Fernanda A.; Pinto, Alberto A.The conclusions of the Bertrand model of competition are substantially altered by the presence of either differentiated goods or asymmetric information about rival’s production costs. In this paper, we consider a Bertrand competition, with differentiated goods. Furthermore, we suppose that each firm has two different technologies, and uses one of them according to a certain probability distribution. The use of either one or the other technology affects the unitary production cost. We show that this game has exactly one Bayesian Nash equilibrium. We do ex-ante and ex-post analyses of firms’ profits and market prices. We prove that the expected profit of each firm increases with the variance of its production costs. We also show that the expected price of each good increases with both expected production costs, being the effect of the expected production costs of the rival dominated by the effect of the own expected production costs.