--%>

Problem on inverse demand curves

In differentiated-goods duopoly business, with inverse demand curves:

P1 = 10 – 5Q1 – 2Q2
P2 = 10 – 5Q2 – 2Q1

and per unit costs for each and every firm equal to 1.

a) For a Cournot game - recommend Firm 1’s best response function? Determine the Nash equilibrium?

b) For a Stackelburg game - what is the Firm 1’s best response function? Determine the Nash equilibrium?

   Related Questions in Mathematics

  • Q : Define terms Terms : Terms are defined

    Terms: Terms are defined inductively by the following clauses.               (i) Every individual variable and every individual constant is a term. (Such a term is called atom

  • Q : Set Theory & Model of a Boolean Algebra

    II. Prove that Set Theory is a Model of a Boolean Algebra The three Boolean operations of Set Theory are the three set operations of union (U), intersection (upside down U), and complement ~.  Addition is set

  • Q : Containee problem For queries Q 1 and Q

    For queries Q1 and Q2, we say Q1 is containedin Q2, denoted Q1 C Q2, iff Q1(D) C Q2

  • Q : Theorem-Group is unique and has unique

    Let (G; o) be a group. Then the identity of the group is unique and each element of the group has a unique inverse.In this proof, we will argue completely formally, including all the parentheses and all the occurrences of the group operation o. As we proce

  • Q : Who firstly discovered mathematical

    Who firstly discovered mathematical theory for random walks, that rediscovered later by Einstein?

  • Q : Breakfast program if the average is

    if the average is 0.27 and we have $500 how much break fastest will we serve by 2 weeks

  • Q : Research Areas in Medical Mathematical

    Some Research Areas in Medical Mathematical Modelling:1. Modeling and numerical simulations of the nanometric aerosols in the lower portion of the bronchial tree. 2. Multiscale mathematical modeling of

  • Q : Problem on Prime theory Suppose that p

    Suppose that p and q are different primes and n = pq. (i) Express p + q in terms of Ø(n) and n. (ii) Express p - q in terms of p + q and n. (iii) Expl

  • Q : Explain the work and model proposed by

    Explain the work and model proposed by Richardson.

  • Q : Problem on Nash equilibrium In a

    In a project, employee and boss are working altogether. The employee can be sincere or insincere, and the Boss can either reward or penalize. The employee gets no benefit for being sincere but gets utility for being insincere (30), for getting rewarded (10) and for be