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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
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)=100-3P 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?
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Lets analyze the best response strategy for each firm at each price point At a price of 10 Firm 1 Th...
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
