As a solution to the Bertrand paradox (economics) it has been suggested that each firm produces a somewhat differentiated product and consequently faces a demand curve that is downward-sloping for all price levels that the firm may charge. An increase in a competitor's price is represented as an upward shift of the firm's demand curve. As a result, when a competitor raises price, generally a firm can also raise its own price and enjoy an identical or higher profit level. There is another, different, Bertrands paradox related to probability; see Bertrands paradox (probability). ...

See also

• Bertrand competition
• Bertrand paradox (economics)