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Suppose a monopoly market has only two types of consumers: low ( L ) and high ( H ) . The low - type consumers
Suppose a monopoly market has only two types of consumers: low L and high H The lowtype consumers have the combined demand function: P Q and the hightypes have P Q If the monopoly can tell which consumers are hightypes and which are lowtypes, then how much will the they supply to the hightypes and how much to the lowtypes? The monopolys cost function is: CQ Q Find all the Nash equilibrium of the above game. Is it unique?
Suppose a monopoly market has only two types of consumers: low L and high H The lowtype
consumers have the combined demand function:
P Q
and the hightypes have
P Q
If the monopoly can tell which consumers are hightypes and which are lowtypes, then how much
will the they supply to the hightypes and how much to the lowtypes? The monopolys cost function
is:
CQ Q
Find all the Nash equilibrium of the above game. Is it unique?
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