Hi,

Can you please help me with this game theory question.

4. Consider the following Stackelberg duopoly game. Firm 1 chooses to produce quantity ql of a particular good, with ql E [0, 100]. Firm 2 observes rm 1's choice and chooses to produce the quantity q2 with (12 E [0, 100]. The market price of the good is given by p : (100 2q1 2q2). We will assume the rms use total revenue as the payoff, ignoring costs so that an: 2 pqi for 3' = 1, 2. (a) Describe the strategy space for each rm. (b) Calculate the unique subgame perfect equilibrium of this game