Compare and explain the answers that you got in the previous three questions.
Suppose there is perfect order preferencingeach broker has a favorite dealer to whom he directs order flow. Show that regardless ofd, collusive quotes are a subgame perfect equilibrium.
Can you show that the same conclusion is true regardless of what demand and supply function we consider?
Suppose that half of the twenty dealers are big dealers and get twice as much order flow as the remaining ten dealers.