... essay is to compare those two models of oligopoly, and particularly explain the case when number of Cournot competitors increases and compare its outcome with Bertrand model. Firstly, the essay will be giving the explanation of the basic Bertrand model and Cournot model and then try to show that in fact those two models give same results in the case when there are many firms interacting in the Cournot model of oligopoly. The Bertrand model of Oligopoly In analyzing oligopoly the key issue is what each firm expects its competitors to do in reaction to its own decisions. Different assumptions about the reactions of competitors lead to different models of oligopolistic equilibrium, and to very different conclusions about the equilibrium price and quantity. The first model that we are going to analyze in this essay is Bertrand's Model. This model aroused as a challenge to the ...

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