Consider a market for a homogenous product with four active companies. Consumers value the product at 170 dollars and buy at most one unit. The total number of consumers in the market is uctuating. In any given period, demand is high with probability 1/4 and there are 40 potential customers. With probability 3/4, demand is low and there are 20 potential customers. Firms know the current demand level but not the level of demand in future periods. They compete in prices with an innite horizon. Suppose all rms face the same cost function C (q) = 10:; and the same discount factor 6 with 0