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Game theory question 2.13. Recall the static Bertrand duopoly model (with homogeneous products) from Problem 1.7: the firms name prices simultaneously; demand for firm i's

Game theory question

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2.13. Recall the static Bertrand duopoly model (with homogeneous products) from Problem 1.7: the firms name prices simultaneously; demand for firm i's product is a - p; if pi p;, and is (a - pi)/2 if pi = p;, marginal costs are c

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