What is the nash equilibrium if the game is only played once

Assignment Help Econometrics

Reference no: EM13233049

An industry consists of two firms with identical costs C(q) = 5q +q2=2. The firms can either collude or compete. If both collude, they each produce qm (half the monopoly output Qm). If one rm colludes and the other competes, the latter produces the output q? that maximizes its prots given that the other firm produces qm. If both compete, they play Cournot and each produce qn. Calculate these outputs and the resulting prots if market demand is Q = 125 ?? p. Represent your results as a normal-form game. What is the Nash equilibrium if the game is only played once?

Reference no: EM13233049

Questions Cloud

Explain the ph at the equivalence point of the titration : What is the pH at the equivalence point of the titration and at the half equivalence point

Describe what is the economic basis for trade : Are you for or against free trade Are you for or against NAFTA What is the economic basis for trade Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..

State the concentration of aniline in the original solution : A 25.0 mL sample of a solution of the weak base aniline, C6H5NH2, requires 25.67 mL of 0.175 M HCl to reach the equivalence point. (Kb for aniline = 4.0 x 10-10)

What is the output of this code sequence : What is the output of this code sequence

What is the nash equilibrium if the game is only played once : An industry consists of two firms with identical costs C(q) = 5q +q2=2. The firms can either collude or compete. If both collude, they each produce qm (half the monopoly output Qm). If one rm colludes and the other competes

Explain how many milligrams of sample remains : The half-life of cobalt-60 is 5.20 yr. How many milligrams of a 1.000-mg sample remains after 3.50 years?

What is the output of this code sequence : What is the output of this code sequence?

What is the one-period nash equilibrium market price : Once again, assume Cournot competition in an industry in which market demand is described by P = 260 - 2Q and in which each firm has a marginal cost of 20. However, instead of two firms, let there now be four.

Explain the elodea and onion cells : How do the size and shape of a human epithelial cells differfrom those of the Elodea and onion cells, Why do Elodea and onion cells have more consistent shapes than human epithelial cells

User Account

All Pages