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Infinitely repeated Cournot duopoly Recall the one-stage Cournot model. There are two identical firms with M C = AC = c 0 and the linear
Infinitely repeated Cournot duopoly Recall the one-stage Cournot model. There are two identical firms with M C = AC = c 0 and the linear market demand q = a p (a > c) for p a. The inverse demand function is p = a q for q a. Firms choose output quantities q1 and q2 simultaneously and independently of each other. The equilibrium outcome is
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