Assignment_4

Assignment_4 - EC 501 Micro Assignment 4 Due 4/26/10 in...

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EC 501 Micro Assignment 4 Due 4/26/10 in class 1. 8.4 ("Two neighboring homeowners,. .") 2. 8.10 ("In A Treatise on the Family. .") 3. 15.6 ("Recall Example 15.6,. .") 4. 15.8 ("Recall the Hotelling model. .") 5. 15.12 ("This question will explore. .") 6. Suppose there are n c; that compete by simul- taneously bringing output y to the market (Cournot assumption). Show that L ( n ) = 1 " for n = 1 and that lim n !1 L ( n ) = 0 ; where " is the market demand elasticity and where L is the Lerner index. 7. Consider the following variant of Hotelling±s product di/erentiation model. Suppose that the consumers are uniformly distributed on a circle with perimeter d = 1 : Firms marginal cost c F: Firm i i = ( p i c ) y i F if it enters 0 otherwise where y i is the demand it faces. Consumers want to buy one unit of the good and have
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Assignment_4 - EC 501 Micro Assignment 4 Due 4/26/10 in...

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