Lecture15_BertrandwithCapacityConstraints_Econ121_Fall2010

Lecture15_BertrandwithCapacityConstraints_Econ121_Fall2010...

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Click to edit Master subtitle style  11/5/10 Lecture 15 Bertrand with Capacity Constraints Econ 121: Industrial Organization UC Berkeley Fall 2010 Prof. Cristian Santesteban
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 11/5/10 Overview Bertrand with Capacity Constraints
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 11/5/10 Bertrand with Capacity Constraints Assume c=0 for simplicity. Low price firm gets all the demand. How is demand allocated if there are capacity constraints? Assume “efficient rationing” This means that those that value the good the most are served first by the low-price supplier.
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 11/5/10 Bertrand with Capacity Constraints
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 11/5/10 Bertrand with Capacity Constraints
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 11/5/10
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Lecture15_BertrandwithCapacityConstraints_Econ121_Fall2010...

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