Copy of 20 Oligopoly Exercise

Copy of 20 Oligopoly Exercise - SUMMARY OUTPUT Regression...

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Unformatted text preview: SUMMARY OUTPUT Regression Statistics Multiple R 0.5323977 R Square 0.2834473 Adjusted R Square 0.2797632 Standard Error 2.5217499 Observations 392 ANOVA df SS MS F ignificance F Regression 2 978.53803 489.26902 76.938498 7.01E-029 Residual 389 2473.7375 6.3592223 Total 391 3452.2755 Coefficientstandard Erro t Stat P-value Lower 95%Upper 95%Lower 95.0% Upper 95.0% Intercept-0.704291 2.1182647 -0.332485 0.7397024 -4.868971 3.4603896 -4.868971 3.4603896 SC Price-2.158877 0.6225499 -3.467798 0.0005834 -3.382861 -0.934894 -3.382861 -0.934894 HY Price 5.5687121 1.6028178 3.4743264 0.0005698 2.4174424 8.7199818 2.4174424 8.7199818 SUMMARY OUTPUT Regression Statistics Multiple R 0.3124232 R Square 0.0976083 Adjusted R 0.0929687 Standard E2.1496483 Observatio 392 ANOVA df SS MS F ignificance F Regression 2 194.43568 97.217838 21.038323 2.11E-009 Residual 389 1797.5643 4.620988 Total 391 1992 Coefficientstandard Erro t Stat P-value Lower 95%Upper 95%Lower 95.0% Upper 95.0% Intercept 4.569339 1.8057002 2.5305081 0.0117833 1.019186 8.119492 1.019186 8.119492 SC Price 0.5540851 0.5306884 1.0440875 0.2970933 -0.489291 1.5974615 -0.489291 1.5974615 HY Price-3.496552 1.366311 -2.559119 0.0108713-6.18283 -0.810274-6.18283 -0.810274 O lig o p o lis t ic P r ic in g E x e r c is e (D if e r e n t ia t e d B e r t r a n d P r ic in g )M ic h a e l G u s t a fs o n K e x ia n g H u T e a m 1 In th is e x e r c is e y o u w il fin d o p tim a l p r ic in g s tr a te g ie s fo r H o g i Y o g i a n d S m a r t C o k ie , tw o lo c a l c o m p e tito r s w h o o f e r a n ic e c r e a m c o k ie s a n d w ic h . Y o u w il u s e d a ta fr o m a d e m a n d s u r v e y to c o n s tr u c t d e m a n d c u r v e s fo r e a c h fir m 's s a n d w ic h p r o d u c t. U s in g d e m a n d c u r v e s a n d c o s t in fo r m a tio n , y o u w il fin d e a c h fir m 's r e a c tio n fu n c tio n . A r e a c tio n fu n c tio n s p e c ifie s a fir m 's p r o fit m a x im iz in g p r ic e a s a fu n c tio n o f th e ir c o m p e tito r 's p r ic e . Y o u w il th e n s o lv e th e s e e q u a tio n s s im u lta n e o u s ly to id e n tify th e u n iq u e B e r tr a n d - N a s h e q u ilib r iu m in th e p r ic in g g a m e . T h e s e a r e th e m u tu a l b e s t r e s p o n s e p r ic e s th a t th e p la y e r s s h o u ld c h a r g e to m a x im iz e p r o fits . ( P le a s e r e fe r to th e R iv a lr y in O lig o p o ly r e a d in g fo r a fu l d e s c r ip tio n o f D if e r e n tia te d B e r tr a n d c o m p e titio n ) . Q U E S T IO N S 1 . U s in g d a t a fr o m t h e s u r v e y b e lo w a n d E x c e l's r e g r e s io n fe a t u r e , e s t im a t e t h e d e m a n d c u r v e fo r e a c h fir m . W r it e d o w n e a c h fir m 's d e m a n d c u r v e ....
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This note was uploaded on 11/17/2011 for the course BUS M ManEc387 taught by Professor Benson during the Fall '11 term at BYU.

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Copy of 20 Oligopoly Exercise - SUMMARY OUTPUT Regression...

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