Solution-Each firm choose any pricewhat is/are the nash

Each firm choose any pricewhat is/are the nash equilibrium/a

Assignment Help Econometrics

Reference no: EM13966246

Two identical firms have: MC = $1 and face a market demand function of: P = 6 - Q. Thus, total quantity, Q = q1 + q2, the sum of what each firm produces, and profit (payoff) per firm (same for both), (pi)1 = (P - MC) x q1 = [(6 - Q) - 1] x q1 = [5 - (q1 + q2)] x q1

a) Cournot Duopoly: Each firm chooses a discrete quantity: 0, 1, 2, or 3. Present the game in matrix form, and find its pure strategy Nash equilibria. Are there any dominant or dominated strategies for either player?

b) Bertrand Duopoly: Each firm can choose any price. What is/are the Nash equilibrium/a?

Reference no: EM13966246

Questions Cloud

Probability that the mean weight of sugar : A particular brand of sugar is sold in 5-lb packages. The weight of sugar in these packages can be assumed to be normally distributed with mean μ = 5 lb and standard deviation σ = 2 lb. What is the probability that the mean weight of sugar in 15 r..

The book values of all assets and liabilities : The book values of all assets and liabilities are the same as their fair values. Any excess cost from either purchase relates to identifiable intangible assets.

Determine the annual percentage increase in plant capacity : A mass-production plant has eight machines and currently operates two 8-hr shifts per day, 5 days per week, 50 weeks per year. The eight machines produce the same part each at a rate of 15 pc/hr. Determine the annual production capacity of this plant..

Ability to create barrier to entry for potential competitors : Strength of Business Idea For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1) score. Low Potential (-1) Moderate Potential (0) High Potential (+1). Timeliness of entry to market : Not timely Moderately timely Ver..

Each firm choose any pricewhat is/are the nash equilibrium/a : Cournot Duopoly: Each firm chooses a discrete quantity: 0, 1, 2, or 3. Present the game in matrix form, and find its pure strategy Nash equilibria. Are there any dominant or dominated strategies for either player?

Pick any large company and describe three risks : Pick any large company and describe three risks that it faces and how it responds to those risks.

Calculate the amount of depreciation : Calculate the amount of depreciation that should be charged during the third year of the machine's life if 25,000 units are produced that year.

Provide three examples of how a company : Provide three examples of how a company's risks can influence its planning,contmlling, and decision-making activities.

What does the term status quo refer to : What does the term "status quo" refer to? If a policy advocate does not correctly identify the cause of the problem we cannot predict which of the following?

User Account

All Pages

Each firm choose any pricewhat is/are the nash equilibrium/a

Reference no: EM13966246

Reference no: EM13966246

Questions Cloud

Reviews

Write a Review

Econometrics Questions & Answers

Design a simple econometric research project

Multiplicative decomposition method

Market for cigarettes

Solve the forecast model

What are the marginal abatement cost functions

Write the t statistic for testing the null hypothesis

What is economics system

Multiple choice questions related to market concentration

Calculating number of units produced by firm

Question about mobile commerce

Calculating the average days past due and average flow time

Mechanism of an english auction and second price auction

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT