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EC311 · Intermediate Microeconomics

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EC311 / TOPIC 35

8.9 Differentiated Bertrand and follower advantages

One idea · follow the reasoning · then practise1 / 9

01

How can differentiated products create upward-sloping price best responses?

A large building, smaller buildings, groups of game pieces, and a branching decision board connected by arrows
VISUAL NOTE · Market power and games Differentiation softens price undercutting

With different locations, a small price difference does not move every customer to one shop.