Infinitely repeated cournot duopoly

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Infinitely Repeated Cournot Duopoly: Alice and Bob each operate each operate a firm in a quantity setting (Cournot) duopoly game. Let the cost of a unit for Alice and Bob be 6. They both face the same market demand equation: P = 24 - Q, where P is market price and Q is the total quantity supplied to the market: Q = qAlice + qBob . Suppose Alice and Bob Interact repeatedly. Let the continuation probability be 0.9.

Reference no: EM13151140

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