Reference no: EM13853523
Two companies are deciding at what point to enter a market. The market lasts for four periods and companies simultaneously decide whether to enter in period 1, 2, 3, or 4, or not enter at all. Thus, the strategy set of a company is {1,2,3,4,do not enter}. The market is growing over time, which is reflected in growing profit from being in the market. Assume that the profit received by a monopolist in period t (where a monopoly means that only one company has entered) is 10 x t - 15, whereas each duopolist (so both have entered) would earn 4 x t - 15. A company earns zero profit for any period that it is not in the market. For example, if company 1 entered in period 2 and company 2 entered in period 3, then company 1 earns zero profit in period 1; 5 ( = 10 x 2 - 15) in period 2; -3 ( = 4 x 3 - 15) in period 3; and 1 ( = 4 x 4 - 15) in period 4, for a total payoff of 3. Company 2 earns zero profit in periods 1 and 2, -3 in period 3, and 1 in period 4, for a total payoff of -2.
a. Derive the payoff matrix.
b. Derive a company’s best reply for each strategy of the other company.
c. Find the strategies that survive the IDSDS.
d. Find the Nash equilibrium.
|
A bathroom scale measures the normal force
: A bathroom scale measures the normal force being exerted down on it. A box of mass 9.2kg sits on a bathroom scale that reads 6.2N. What is the tension (in Newtons) in the cable attached to the top of the box
|
|
What will be the gross revenue
: What will be the gross revenue if the government’s NCF is $560,000, contractor's NCF is 240,000 and the contractor's cost is 200,000?
|
|
Describe the relationship of race-class and gender
: Describe the relationship of race, class, and gender and its effect on health and mental care delivery in the United States. What steps could be taken to guarantee that all have the same access to the appropriate health care? Should funds be made ava..
|
|
Calculate his work rate
: A man of mass 60kg walks along a horizontal road at a steady speed of 4.6 km h^-1 by taking strides of length 96cm. His centre of gravity rises (and falls) 9.0 cm at each step. Calculate his work rate.
|
|
Derive the payoff matrix and find the strategies
: Two companies are deciding at what point to enter a market. The market lasts for four periods and companies simultaneously decide whether to enter in period 1, 2, 3, or 4, or not enter at all. Thus, the strategy set of a company is {1,2,3,4,do not en..
|
|
Explain role and importance of human resource manager
: Learn how to be a more effective partner with management in implementing competitive human resource strategy. Role and importance of Human Resource Manager. Assessing Performance and Developing Employees.
|
|
Does shot make it into the goal
: 5. Projectile motion. You make a goal kick in a soccer game while you are 1.5 m away from the goal entrance. As the ball leaves your foot, it makes an angle of 55° with the ground and travels at 6 m/s. If the top of the goal is 3.0 m high, does you..
|
|
Draw a free body diagram for the combined passenger
: Draw a free body diagram for the combined passenger and chair.
|
|
Find all nash equilibrium
: On Friday night, Elton and his partner Rodney are deciding where to go for dinner. The choices are Indian, Korean, and Mexican. Elton most likes Indian food and most dislikes Mexican food, whereas Mexican is Rodney’s favorite and Indian is his least ..
|