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EC311 · Intermediate Microeconomics

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EC311 / TOPIC 32

8.6 Bertrand, price leadership and cartels

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How do price competition, leadership, and cartels differ in strategic variables?

A large building, smaller buildings, groups of game pieces, and a branching decision board connected by arrows
VISUAL NOTE · Market power and games Compete on price, follow a leader, or coordinate

If two shops sell identical goods, what happens when one slightly undercuts the other?