Assume there are two players in an oligopoly

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Assume there are two players in an oligopoly, playing repeated Cournot competition (that is, they compete on quantity). The demand in each year is p= A-by. Each player has discount rate r. Find strategies that lead to a sub-game perfect equilibrium where the oligopolists each get half of the monopoly level profits. What restrictions, if any, are on r?

(Hint: propose a strategy. Check that the strategy is a best response to itself. To do this you need to check what the best cheating strategy would

Reference no: EM131097320

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