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The discrete Bertrand game (p186) . Question: Two firms set prices simultaneously. Consumers buy from the firm with the lowest price and split their demand
The discrete Bertrand game (p186) . Question: Two firms set prices simultaneously. Consumers buy from the firm with the lowest price and split their demand equally across the two firms if prices are equal. Market demand is q = 10 - p, MC = 2. Sellers can only set the following prices: 3, 4, 5. . 1. Write down the normal form game. . 2. Solve for the equilibrium of the game
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