--%>

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 : What is Big-O hierarchy The big-O

    The big-O hierarchy: A few basic facts about the big-O behaviour of some familiar functions are very important. Let p(n) be a polynomial in n (of any degree). Then logbn is O(p(n)) and p(n) is O(an<

  • Q : Who had find Monte Carlo and finite

    Who had find Monte Carlo and finite differences of the binomial model?

  • Q : Ordinary Differential Equation or ODE

    What is an Ordinary Differential Equation (ODE)?

  • Q : Mean and standard deviation of the data

    Below is the amount of rainfall (in cm) every month for the last 3 years in a particular location: 130 172 142 150 144 117 165 182 104 120 190 99 170 205 110 80 196 127 120 175

  • Q : Formal Logic It's a problem set, they

    It's a problem set, they are attached. it's related to Sider's book which is "Logic to philosophy" I attached the book too. I need it on feb22 but feb23 still work

  • Q : Solve each equation by factoring A

    A college student invested part of a $25,000 inheritance at 7% interest and the rest at 6%.  If his annual interest is $1,670 how much did he invest at 6%?  If I told you the answer is $8,000, in your own words, using complete sentences, explain how you

  • Q : Calculus I need it within 4 hours. Due

    I need it within 4 hours. Due time March 15, 2014. 3PM Pacific Time. (Los Angeles, CA)

  • Q : Pig Game Using the PairOfDice class

    Using the PairOfDice class design and implement a class to play a game called Pig. In this game the user competes against the computer. On each turn the player rolls a pair of dice and adds up his or her points. Whoever reaches 100 points first, wins. If a player rolls a 1, he or she loses all point

  • Q : Simulation with Arena An office of

    An office of state license bureau has two types of arrivals. Individuals interested in purchasing new plates are characterized to have inter-arrival times distributed as EXPO(6.8) and service times as TRIA(808, 13.7, 15.2); all times are in minutes. Individuals who want to renew or apply for a new d

  • Q : Define Well-formed formulas or Wffs

    Wffs (Well-formed formulas): These are defined inductively by the following clauses:    (i) If  P  is an n-ary predicate and  t1, …, tn are terms, then P(t1, …, t