Is Bertrand Model Efficient?
Is Bertrand Model Efficient? Bertrand competition has traditionally been considered as more efficient in welfare terms than Cournot competition because it leads to lower prices and larger quantities (see for example Shubik, 1980, Vives, 1985, Singh and Vives, 1984). Is the Bertrand model a more useful model of firm competition than the Cournot model? If