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Walmart (firm 1) and Amazon (firm 2) are a duopoly in the grocery market. They are faced with an inverse demand of P(Q1, Q)
Walmart (firm 1) and Amazon (firm 2) are a duopoly in the grocery market. They are faced with an inverse demand of P(Q1, Q) = 4 2(Q + Q) and total costs of TC(Q;) = 2Q, i = 1,2. Note that the marginal cost is not constant! 2.1. Obtain the Cournot equilibrium quantities and profits. 2.12 Obtain the Stackelberg equilibrium in which Walmart moves first. Compare with the Cournot equilibrium. 2.3. Obtain the cartel outcome. Compare with Stackelberg and Cournot.
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To obtain the Cournot equilibrium quantities and profits we need to solve for the quantities each firm will produce given the inverse demand function ...
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Strategic Management An Integrated Approach
Authors: Charles W. L. Hill, Gareth R. Jones
10th Edition
111182584X, 978-1111825843
