Find the subgame perfect nash equilibrium (SPNE) of the problem: 2 firms are competing (Stackelberg): 1st...
Find the subgame perfect nash equilibrium (SPNE) of the problem:
2 firms are competing (Stackelberg): 1st firm 1 picks q1, then firm 2 observes q1 and picks q2. Price is determined by P(Q) = 40 - q1 - q2.
Firms 1 and 2 both have a fixed or marginal cost of 8.
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Find the subgame perfect nash equilibrium (SPNE) of the
problem:
2 firms are competing (Stackelberg): 1st...
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