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Assume that firm B (the potential entrant) assigns probability 'p' (1 > p > 0) to firm A's cost being $40 [and probability (1 -
Assume that firm B (the potential entrant) assigns probability 'p' (1 > p > 0) to firm A's cost being $40 [and probability (1 - p) to firm A's cost being $60]. Show why (or why not) firm B wants to enter this market if firm A charges $100 in the first stage of the game
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
