Is regulation possibly desirable

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Reference no: EM131282298

1. Why is there generally a first-mover advantage under sequential quantity competition (with one leader and one follower) and a second-mover advantage under sequential price competition? Explain by referring to the concepts of strategic complements and strategic substitutes.

2. When firms only face fixed setup costs when entering an industry, how is the equilibrium number of firms in the industry determined? Is regulation possibly desirable (to encourage or discourage entry)? Discuss.

Reference no: EM131282298

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