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consider a monopolist uplstream supplier U1 selling to downstream buyer D1 D2 engaged in cournot competition. downstream demand is p= 100-Q and marginal cost is
consider a monopolist uplstream supplier U1 selling to downstream buyer D1 D2 engaged in cournot competition. downstream demand is p= 100-Q and marginal cost is zero at both upstream and downstream level. imagine a contract in which U1 sells 25 units as a package to D1 AND D2 at a price of $1250. each firm can either accept the package or reject it. Show the decisions are made simultaneously and each firm has full information about other action, the nash equilibrium for each to accept this offer
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