Bertrand duopoly equilibrium calculator
The Bertrand model is the workhorse of simultaneous price competition: two firms sell a homogeneous good, post prices at the same moment, and the cheaper seller takes the entire market — they split demand only when the two prices match.
Run — free
With constant marginal cost and no capacity constraint, each firm wants to undercut a rival who is pricing above cost, so the unique Nash outcome drives both prices down to marginal cost. That is the Bertrand paradox: two sellers are enough for the competitive price. This Bertrand duopoly equilibrium calculator takes linear inverse demand P = a − bQ together with each firm's constant marginal cost and returns both posted prices, the quantities each firm sells, total output, and profits. When costs are equal the market splits at p = c with zero economic profit; when they differ the low-cost firm either posts its monopoly price or limit-prices at the rival's cost. Students, tutors, and industrial-organization notebooks get a deterministic key instead of a spreadsheet that mishandles the split-versus-winner branch. The same pure analytic path powers the free browser widget and the API.
How to use it
Enter your values in the form above. The tool checks them before calculating and shows the result on the same page.
Check your inputs
Use the labels and units shown next to each field. If something is missing or outside the allowed range, the page points to the field to fix.
Use it again or automate it
Use the browser tool for individual checks and the API when you need the same capability in an automated workflow.
What you can do with it
Get an answer now
Enter one set of values and see the result without building a spreadsheet or script.
Compare scenarios
Change one value at a time and rerun the calculation to understand what affects the result.
Automate repeated work
Use the API when the same calculation needs to run inside your product or workflow.
FAQ
How do I use this capability?
Complete the fields above and run it on this page. The form highlights anything that needs attention.
For developers — API access
Everything on this page is available programmatically. This section is for teams who want to wire it into their own systems; everyone else can just use the tool above.
API endpoint
Prefer to automate it? One authenticated POST creates the task; the result comes back by webhook or a signed link. The same capability also runs here on the web, by email and from Telegram — and soon from our app too.
Call it from your stack
curl -X POST https://api.kit.forhosting.com/econ/bertrand-duopoly-equilibrium \
-H "Authorization: Bearer $KIT_KEY" \
-H "Content-Type: application/json" \
-d '{"demand_intercept":100,"demand_slope":1,"mc_firm1":20,"mc_firm2":20}'const res = await fetch("https://api.kit.forhosting.com/econ/bertrand-duopoly-equilibrium", {
method: "POST",
headers: {
"Authorization": `Bearer ${process.env.KIT_KEY}`,
"Content-Type": "application/json"
},
body: JSON.stringify({
"demand_intercept": 100,
"demand_slope": 1,
"mc_firm1": 20,
"mc_firm2": 20
})
});
const { task_id } = await res.json();import os, requests
res = requests.post(
"https://api.kit.forhosting.com/econ/bertrand-duopoly-equilibrium",
headers={"Authorization": f"Bearer {os.environ['KIT_KEY']}"},
json={
"demand_intercept": 100,
"demand_slope": 1,
"mc_firm1": 20,
"mc_firm2": 20
},
)
task_id = res.json()["task_id"]<?php
$res = file_get_contents("https://api.kit.forhosting.com/econ/bertrand-duopoly-equilibrium", false, stream_context_create([
"http" => [
"method" => "POST",
"header" => "Authorization: Bearer " . getenv("KIT_KEY") . "\r\nContent-Type: application/json",
"content" => '{"demand_intercept":100,"demand_slope":1,"mc_firm1":20,"mc_firm2":20}',
],
]));
$task = json_decode($res, true);body := bytes.NewBufferString(`{"demand_intercept":100,"demand_slope":1,"mc_firm1":20,"mc_firm2":20}`)
req, _ := http.NewRequest("POST", "https://api.kit.forhosting.com/econ/bertrand-duopoly-equilibrium", body)
req.Header.Set("Authorization", "Bearer "+os.Getenv("KIT_KEY"))
req.Header.Set("Content-Type", "application/json")
res, _ := http.DefaultClient.Do(req)Example request
{
"demand_intercept": 100,
"demand_slope": 1,
"mc_firm1": 20,
"mc_firm2": 20
}Example response
{
"task_id": "tsk_a1b2c3d4e5f6a1b2c3d4e5f6",
"type": "econ.bertrand_duopoly_equilibrium",
"status": "queued",
"_links": {
"result": "/tasks/tsk_…/result"
}
}The API is asynchronous: the call returns a task_id immediately and the result arrives by webhook. Polling is capped at 1 req/s per task.
Pricing
Published price — no tokens, no invented credits. A failed task is never charged.
Errors
| HTTP | Code | Meaning |
|---|---|---|
401 | unauthorized | Missing or invalid API key. |
402 | insufficient_balance | Your balance doesn't cover the task price. |
404 | unknown_type | That task type doesn't exist. |
429 | rate_limited | Too many requests. Use the webhook instead of polling. |