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Two firms are competing on price. If they have the same price, they share the market - otherwise the one with the lowest price captures
Two firms are competing on price. If they have the same price, they share the market - otherwise the one with the lowest price captures all demand Market demand follows Q(P)=1003P Cost is C(Q)=10Q Firms can only choose between the following prices: 10, 10.1, 10.2, 10.3. In the Nash equilibria of this game, what prices are charged? Same suggestion as before: write down the payoff matrix 10.1 10.2 10 10.3
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