![]() This cookie is used for load balancing services provded by Amazon inorder to optimize the user experience. It does not correspond to any user ID in the web application and does not store any personally identifiable information. The cookie is used by cdn services like CloudFlare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. It is rare goods are homogenous, even with a good like water, firms may have different brand images.There may be search and transaction costs of moving to a cheaper product.Consumers may not have perfect information about the cheapest goods.Firms will face capacity constraints and may not be able to increase supply to meet the doubling of demand in a short time.Their choices will reflect factors, such as brand loyalty, convenience, ease of purchase and quality of the good. Consumers are not just motivated by buying the cheapest good.Bertrand Competition may be more likely if they are seeking to maximise sales. It depends on the objectives of firms, for example, is it to profit maximise or increase market share.Over time, there is the possibility firms will learn from their behaviour and take a risk in keeping prices above marginal cost. ![]()
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