A game can be both Bertrand and Nash.

Question

Quizplus · Accepted Answer

A game can be both Bertrand and Nash. A Bertrand game is a game where firms set prices and compete on price, while a Nash game is a game where each player chooses a strategy based on the strategies chosen by the other players. It is possible for a game to have both price-setting behavior and strategic interaction, making it both Bertrand and Nash. A game can be both Bertrand and Nash. Bertrand equilibrium is concerned with price competition among firms whereas Nash equilibrium applies to any type of strategic competition. Therefore, a game can meet the criteria for both types of equilibrium.

A Game Can Be Both Bertrand and Nash