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Bertrand Price Undercutting: A Brief Classroom Demonstration

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  • Andreas Ortmann

Abstract

The author presents a brief classroom demonstration illustrating Bertrand price undercutting. The demonstration is appropriate for micro principles and intermediate- and upper-level undergraduate classes, as well as graduate classes in micro, industrial organization, and game theory.

Suggested Citation

  • Andreas Ortmann, 2003. "Bertrand Price Undercutting: A Brief Classroom Demonstration," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(1), pages 21-26, January.
    • Handle: RePEc:taf:jeduce:v:34:y:2003:i:1:p:21-26
    DOI: 10.1080/00220480309595197
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    References listed on IDEAS

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    1. Greg Delemeester & Jurgen Brauer, 2000. "Games Economists Play: Noncomputerized Classroom Games," The Journal of Economic Education, Taylor & Francis Journals, vol. 31(4), pages 406-406, December.
    2. Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-1326, December.
    3. Brown Kruse, Jamie & Thompson, Mark A., 2001. "A comparison of salient rewards in experiments: money and class points," Economics Letters, Elsevier, vol. 74(1), pages 113-117, December.
    4. repec:bla:jecsur:v:15:y:2001:i:2:p:221-36 is not listed on IDEAS
    5. Hans Gremmen & Jan Potters, 1997. "Assessing the Efficacy of Gaming in Economic Education," The Journal of Economic Education, Taylor & Francis Journals, vol. 28(4), pages 291-303, December.
    6. Dufwenberg, Martin & Gneezy, Uri, 2000. "Price competition and market concentration: an experimental study," International Journal of Industrial Organization, Elsevier, vol. 18(1), pages 7-22, January.
    7. Reinhard Selten, 1973. "A Simple Model of Imperfect Competition, where 4 are Few and 6 are Many," Center for Mathematical Economics Working Papers 008, Center for Mathematical Economics, Bielefeld University.
    8. Friedman, Daniel, 1996. "Equilibrium in Evolutionary Games: Some Experimental Results," Economic Journal, Royal Economic Society, vol. 106(434), pages 1-25, January.
    9. Charles A. Holt & Monica Capra, 2000. "Classroom Games: A Prisoner's Dilemma," The Journal of Economic Education, Taylor & Francis Journals, vol. 31(3), pages 229-236, September.
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    Cited by:

    1. Libor Dušek & Andreas Ortmann & Lubomír Lízal, 2005. "Understanding Corruption and Corruptibility Through Experiments," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(2), pages 147-162.
    2. Robert Rebelein & Evsen Turkay, 2016. "When do first-movers have an advantage? A Stackelberg classroom experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 47(3), pages 226-240, July.

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    More about this item

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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