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please help and show work f2. [5] Professor Ghetpayd has a monopoly in the market for undergrad game theory textbooks. The timediscounted value of Professor
please help and show work
\f2. [5] Professor Ghetpayd has a monopoly in the market for undergrad game theory textbooks. The timediscounted value of Professor Ghetpayd's future earnings is $13,000. Professor Vantkash is considering entering the textbook market and releasing a competing book. With two books amicablyr splitting the ma rket, the timediscounted value of each professor's future earnings would be $600. Suppose each professor knows the profits of the other [full information}. Consider each of the strategies below. For each one, determine whether it is a rational way for Professor Ghetpayd to deter Professor Vantkash from bringing his competing textbook to market. Explain your reasoning. i. [2] Professor Ghetpayd threatens to cut his price and attack the credibilityr of Professor Vantkash's book so that Professor Vantkash would loose $8. In so doing, Professor Ghetpayd would still make $700 over time. ii. [2] Professor Ghetpaycl makes a side-deal and with Professor Vantkash's and pays him $1,000 to destroy all drafts of his textbook. In so doing, Professor Getpayd remains a monopolist {assume no other potential entrants exist}Step by Step Solution
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