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Consider a market with two firms, Firm 1 and Firm 2, which producesimilar(not homogeneous) products. Assume that the firms are identical, i.e., they have exactly
Consider a market with two firms, Firm 1 and Firm 2, which producesimilar(not homogeneous) products. Assume that the firms are identical, i.e., they have exactly the same costs. Design asequential price-setting gamewhere Firm 1 is the first-mover and Firm 2 is the second-mover, and there is asecond-mover advantage.
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