Please characterise the non-collusive oligopoly model Bertrand-Edgeworth (Competing on price with capacity constraint) (Duopoly):

• Same assumption as in Bertrand model but with capacity constraint • Capacity constraint implies firms cannot serve the entire market individually • At Bertrand equilibrium, firms are producing at their maximum capacity • Firms have incentive to increase price and earn more profits without fear of losing all their customers • Equilibrium: not stable