ELI5: Explain Like I'm 5

Bertrand competition

Bertrand competition is a type of economic competition between companies who sell similar products or services. Companies that compete in Bertrand competition often try to lower their prices to get more customers and sell more of their product. It's a bit like a game - each company is trying to outsmart their competitors by offering a better price than them. The company that offers the lowest price will usually win the most customers.