Bertrand Differentiated Products Tariff Model

This variant includes three sources of supply to a single, highly concentrated domestic market. Firms maximize profits in a Bertrand-style competition. They choose their price taking the equilibrium prices of their competitors as given. Demand has a CES form. The model can simulate the effects of a tariff change on prices, quantities, and profits in the market.

Model Details:

• Structural Equations for PE Models in Group 2 U.S. [PDF] Pages(8 ) 205 KiB

Tags:

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Model Contacts:

• pemodeling@usitc.gov

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Download Model:

• bertrand differentiated products tariff model xlsx [XLSX] 1 MiB

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Download Model LaTex:

• Structural Equations for PE Models in Group 2 U.S. [TXT] B

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Associated Papers:

• https://www.usitc.gov/publications/332/working_papers/financial_impact.pdf [PDF]

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Recommended Citations:

Riker, D. and Schreiber S. (2020). Structural Equations for PE Models in Group 2 (Imperfect Competition). U.S. International Trade Commission. Trade Policy PE Modeling Portal.

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