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What is the best response of player

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Reference no: EM131557223

1.) Consider an original Cournot Duopoli payoff functions for Player 1 and Player 2.

a) What is the best response of Player 1 to any strategy (quantity) of Player 2? Other way around?

b) Perform several steps of IESDS. Does this process converges? If yes, to which pair of strategies?

c) Confirm your answer by calculating Nash Equilibrium.

Reference no: EM131557223

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