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Please submit a screen shot of your Year 2, round 2 figures. Then please discuss the strategy you used and the outcome.

\fCompetition Game: Price and quantity competition and C02 environmental policies (quotas, taxes and emission permits] You are responsible for managing a firm selling a good whose production emits C01. You will play the same game against the same players on 4 completely separate markets: Actions on one market do not have any direct impact on the other markets. You can see these markets as parallel universes in which demand and production costs are the same, but environmental policies are different (this will be useful to compare outcomes of these policies). Note in particular, that goods produced on one market cannot be sold on other markets. production capacity Price competition Price competition choice (Round '1) [Round 2) i'irli Iii> lyl Yea I' The timeline is separated into years. At beginning of a year, you have to choose how much to produce. Then, once every firm has decided how much to produce, production takes place and you have to choose the price at which you will sell your goods. For pedagogic reasons and to allow you to correct potential pricing mistakes, you will play the "sales part" twice (but this does not correspond to any real-world situation]. We call rounds these two sales sequences {for each round, the maximum quantity you can sell is equal to the total quantity you selected at the production stage). Note that goods are perishable: what is not sold at the end of a round is lost. Finally, your shareholders only leave enough cash in yourfirm to let you produce a maximum of 1200 goods per round on each market {note that this does not mean that producing 1200 goods is a good ideal). This constraint applies market by market. Let's first talk about the general structure ofthe game and we will present the data later. Do not hesitate to play a game alone [one player, one universe] to prepare for the real game. The Game Structure 1\"! Production choice On the first screen, you must select production on each market. Produclion Choice - Year :I Klan!\" Munmmwwrm mm m ' imam-Mi pm..nm.m.....immy \"Minnow\\f\f\fGame Data: Demand If you and each of your competitor all set the same price on a market, each firm will sell, on average, about: Eln-WEE\" Salesfrm ME- Demand is proportional to the number of firms in the game [and is the same as in the other competition games on economics-games.com. Be careful, the game has common features with other games you can find on our other site, lud.io, but demand is quite different}. As you will see, products are slightly differentiated and customers have different brand preferences... {There is also some random in the customer's characteristics]: The cheapest firm will usually not get the whole demand. Consequently, because of price differentiation, demand estimates displayed above can only be used to get information about orders of magnitude. Costs Arm must pay 15 for each good produced, and then 4 for each good sold. Each good produced a emits o 0.5 tons of (30113230: emissions are hence completely determined by choices at the production pha se]. C02 emissions [tons]: per good produced Environmental policies Finally, note that environmental policies differ on each market. a- Market 1 is a benchmark market, there is no environmental policy. - Dn market 2, there is a EU; environmental tax equal to {all} for each ton of emitted CE}; - [in market 3, there are {non-tradable] quotas. Afirm cannot emit more than 30D tons of CD: by round [or EGO tons by year} a- Market 4 is regulated with CE}; emissions permits. Each year, each rm receives 601] permits for free [that is, EDD permits for each round]. With a permit, a rm can emit one ton of CD; at no cost. If a firm emits more CD; than it has permits, it must buy permits at a price of 40 for each exceeding ton of C02. If it emits less CD; than it has permits, itwill be able to sell unused permits at a price of rm each. Note that for a 40 unit tax for each ton of CD2, producing l goods costs [ 15+U.5*4El}*1i3, i.e. 35013]. If rms all decide to produce 1WD goods, they will nd themselves in the same situation as in one of the markets of the first competition game of economics-games.com [Impact of fixed costs and capacity constraints on price and profits, with differentiated goods]