A DUOPOLIST CASE

Consider two duopolists with differentiated products, who compete in prices. Their demand and cost functions are given by ql : 2 2191 | p2, Q2 : 2 2p2 +101, 0.; : qi, where (12- and p; are their quantities and prices. i. Compare the simultaneous move Nash equilibrium solution (for prices and prots) with the cooperative solution. ii. Given the cooperative solu tion prices, does it pays the two rms to break the agreement? Explain