2 Suppose instead that firm 1 was the Stackelberg leader in this market. Rewrite firm 1s profit...
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2 Suppose instead that firm 1 was the Stackelberg leader in this market. Rewrite firm 1’s profit function, using firm 2’s reaction function, and solve for the Stackelberg equilibrium. Once you’ve solved for the equilibrium market price and total market demand, you should be able to tell whether consumer surplus has increased or decreased.
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Artificial Intelligence For Games
ISBN: 9780080885032
2nd Edition
Authors: Ian Millington, John Funge, Millington
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