Home / Questions / Suppose demand is given by P=56-2Q . There are two firms with identical costs given by C(q...
Suppose demand is given by P=56-2Q . There are two firms with identical costs given by C(qi)=20qi+F.
Find the Subgame Perfect Nash equilibrium for the game with the following timing: in the first stage Firm 1 can commit to its output; in the second stage Firm 2 can enter and can choose its output. Do this for fixed costs equal to 50,18, and 2.
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