Find the nsh equilibrium

Assignment Help Business Economics
Reference no: EM13795929

After a few years of monopoly, the family that owns the coca-cola monopoly gets in a flight, and they split the company in two. Now there are two large coca-cola retailers in your area, and each retailer must decide whether to charge a high or low price. Assume all customers purchase from the firm with the lowest price. If both firms charge the same price, they split the market. The high price is the monopoly price, so at the high price, the full market is worth the same amount as is it is for monopoly (i.e. your answer to question 2d). At the low price, the market is worth 60% of the value of the monopoly market.

a. Set up the game as a simultaneous move game.

b. find the Nsh equilibrium.

Reference no: EM13795929

Questions Cloud

Testing in health promotion planning issues : How would you use these theories in your program planning?
Global competition on the decisions made by management : Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry.
Organizational theories-effective agency and supporting : Read the Discussion Participation Scoring Guide to learn how the instructor will evaluate your discussion participation throughout this course.
About budgeting and investment : Budgeting and Investment
Find the nsh equilibrium : After a few years of monopoly, the family that owns the coca-cola monopoly gets in a flight, and they split the company in two. Now there are two large coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pr..
Preferred method for prosecuting suspected terrorists : Write a 1,400- to 1,750-word persuasive paper arguing your position on using the criminal legal system and law enforcement as the preferred method for prosecuting suspected terrorists.
Identify the consumer and producer surplus on the graph : Assume that the market for Coca-cola in your area is perfectly competitive, with Demand P= 11-0.1Qd and supply P= 1+ 0.1Qs. Each firm that sells Coca-cola is indentical, with Total Cost TC= 1+0.5Q+2Q? Identify the consumer and producer surplus on the..
Write an essay about article can the american dream be saved : Read an article then write an analysis and respond essay. Article: Can the American Dream Be Saved? by Stuart M. Butler.
Why are virtually all large business firms corporations : What are the advantages and disadvantages of the corporation as a form of business organization - explain how the capacity utilization rate and the interest rate affect the level of investment.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Give an example of a government created monopoly is

give an example of a government created monopoly. is creating this monopoly necessarily bad public policy?explain two

  Graph the function and discuss the context of concavity

Find the values which maximize or minimize for the following function and determine where you have a maximum to minimum. Graph the function and discuss the context of concavity.

  Explain how influences marginal benefits to purchase a house

Provide an example for each about decision-making, interaction and workings of economy. Explain how that influences marginal benefits and marginal costs associated with decision to purchase a house.

  Car industry sales of big ticket items in particular the

car industry sales of big ticket items in particular the autos declined strongly during the current recession and the

  Natural rate of unemployment for this economy

Illustrate what is the natural rate of unemployment for this economy. Assume the economy has been in equilibrium for a while also the inflation rate is 15%.

  Q the tax reform act of 1986 contains a clause

q. the tax reform act of 1986 contains a clause appropriating tax dollars for any taxpayer incorporated on september 7

  Incomes rise for both low-income and high-income workers

If incomes rise for both low-income and high-income workers, but rise less for the high-income workers.

  Explain why may the effective patent life of a drug

Why may the effective patent life of a drug be shorter than the legal life. Explain why may the effective patent life of a drug be longer than the legal life.

  Affect the supply of beef

Explain how does this affect the supply of beef. Explain how does it affect the supply of beef worldwide.

  Elucidate how the central bank manages a nations monetary

Elucidate how the central bank manages a nation's monetary system. Outline the stated direction of recent monetary policy in the United States.

  Is there dominant strategy equilibrium for this auction

Each potential bidder writes down a bid on a piece of paper. buyer with highest bid gets item and has to pay third highest bid. Is there dominant strategy equilibrium for this auction. Make sure you exhaust all possibilities.

  Compute the elasticity of demand when the price of a deluxe

Compute the elasticity of demand when the price of a deluxe cheeseburger raises $2.50 to $3.00 which causes sales to fall from 175 deluxe cheeseburgers each day to 125 deluxe cheeseburgers each day.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd