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Suppose That Etsy (An E-Commerce Site Focused on Handmade or Vintage

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Suppose that Etsy (an e-commerce site focused on handmade or vintage items) necklace vendors compete in a Bertrand market structure with differentiated products. Demand for style 1, produced by vendor 1, is given by Suppose that Etsy (an e-commerce site focused on handmade or vintage items) necklace vendors compete in a Bertrand market structure with differentiated products. Demand for style 1, produced by vendor 1, is given by where p<sub>1</sub> is the price of style 1 and p<sub>2</sub> is the price of style 2, produced by vendor 2. Demand for style 2 is The costs of providing these necklaces are C<sub>1</sub> = q<sub>1</sub> and C<sub>2</sub> = 0.75q<sub>2,</sub> respectively. a. Identify vendor 1's profit function. b. Identify vendor 2's profit function. c. Identify vendor 1's reaction function. d. Identify vendor 2's reaction function. e. Identify the equilibrium price for each necklace.
where p1 is the price of style 1 and p2 is the price of style 2, produced by vendor 2. Demand for style 2 is Suppose that Etsy (an e-commerce site focused on handmade or vintage items) necklace vendors compete in a Bertrand market structure with differentiated products. Demand for style 1, produced by vendor 1, is given by where p<sub>1</sub> is the price of style 1 and p<sub>2</sub> is the price of style 2, produced by vendor 2. Demand for style 2 is The costs of providing these necklaces are C<sub>1</sub> = q<sub>1</sub> and C<sub>2</sub> = 0.75q<sub>2,</sub> respectively. a. Identify vendor 1's profit function. b. Identify vendor 2's profit function. c. Identify vendor 1's reaction function. d. Identify vendor 2's reaction function. e. Identify the equilibrium price for each necklace.
The costs of providing these necklaces are C1 = q1 and C2 = 0.75q2, respectively.
a. Identify vendor 1's profit function.
b. Identify vendor 2's profit function.
c. Identify vendor 1's reaction function.
d. Identify vendor 2's reaction function.
e. Identify the equilibrium price for each necklace.

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