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3. Dynamic Games of Industrial Organisation [50 marks.] Two multinational companies produce the same good. In the first period, firm 1 sells its prod- uct

3. Dynamic Games of Industrial Organisation [50 marks.] Two multinational companies produce the same good. In the first period, firm 1 sells its prod- uct as a monopolist in Paris. In the second period, firm 1 competes with firm 2 in Berlin as a Cournot duopolist. There is no discounting between the two pe- riods. Firm 1 produces quantity Xp

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