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Find the nash equilibrium prices

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Reference no: EM132604902

Consider two duopolists with differentiated products, who compete in prices. Their demand and cost functions are given by Qi = a - bPi + dPj, C = cqi, where Qi and Pi are their quantities and prices and where a,b,d,c are positive parameters.

a. Show that their best reply functions are upward sloping?

b. Find the Nash equilibrium prices?

c. Find their contract curve?

Reference no: EM132604902

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