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Exercise 2. Consider the standard 2-firm symmetric Bertrand game with homogeneous good and zero production cost. Show that for any I, there exists an equilibrium

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Exercise 2. Consider the standard 2-firm symmetric Bertrand game with homogeneous good and zero production cost. Show that for any I, there exists an equilibrium in mixed strategy whereby each firm randomizes accoding to the cumulative distribution function F(p)=1pp,ifpp, and zero otherwise. Exercise 2. Consider the standard 2-firm symmetric Bertrand game with homogeneous good and zero production cost. Show that for any I, there exists an equilibrium in mixed strategy whereby each firm randomizes accoding to the cumulative distribution function F(p)=1pp,ifpp, and zero otherwise

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