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Level of advertising would they commit

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Reference no: EM131199961

Consider the model of advertising nad cournot competition analyzed in this chapter. suppose the two firms could write an externally enforced contract that specifies an advertising level a and a monetary transfer m from firm 2 to firm 1. would the firms write a contract that specifies a=3? if not, to what level of advertising would they commit?

Reference no: EM131199961

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