Oligopoly
Cournot-Bertrand model

In the Cournot model and Bertrand model, it is assumed that all the firms are competing with the same choice variable, either output or price. However, some economists have argued that this does not always apply in real world contexts. Economists Kreps and Scheinkman's research demonstrates that varying economic environments are required in order for firms to compete in the same industry while using different strategic variables. An example of the Cournot-Bertrand model in real life can be seen in the market of alcoholic beverages. The production times of alcoholic beverages differ greatly creating different economic environments within the market. The fermentation of distilled spirits takes a significant amount of time; therefore, output is set by producers, leaving the market conditions to determine price. Whereas, the production of brandy requires minimal time to age, thus the price is set by the producers and the supply is determined by the quantity demanded at that price.
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