Thursday, December 12, 2013

Apple Outside Laptop Price War

CNet reports that Apple is able to stay out of the current laptop price war, and does so profitably.  This would be consistent with the Bertrand product differentiation model when firms compete on price.  The model shows that when firms are able to differentiate their product/service, they can compete on price and do so profitable, as opposed to if they compete on price and do not differentiate their product/service.

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