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Consider a version of the Cournot duopoly game, where firms 1 and 2 simul- taneously and independently select quantities to produce in a market. The

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Consider a version of the Cournot duopoly game, where firms 1 and 2 simul- taneously and independently select quantities to produce in a market. The quantity selected by firm i is denoted q; and must be greater than or equal to zero, for i = 1, 2. The market price is given by p = 100 - 291 - 292. Suppose that each firm produces at a cost of 20 per unit. Further, assume that each firm's payoff is defined as its profit. (If you completed Exercise 5 of Chapter 3, then you have already dealt with this type of game.) Suppose that player 1 has the belief that player 2 is equally likely to select each of the quantities 6, 11, and 13. What is player I's expected payoff of choosing a quantity of 14

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