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Consider the game where firm A moves first, following which firms B and C move simultaneously. There is a subgame-perfect equilibrium in which firms'
Consider the game where firm A moves first, following which firms B and C move simultaneously. There is a subgame-perfect equilibrium in which firms' strategies are as follows: Firm A enters, Both firms B and C enter if A does not enter, . Both firms B and C enter with probability q if firm A enters The value of q is
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
