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Unformatted text preview: Game Theory 1 Question 1 There are two firms in the market: OfficeMin and WorstBuy. Each firm can charge a regular price or a discounted price. When both firms charge the regular price on the item, each firm gets $500 as profit. But if one firm sets the discounted price on the item and other firm does not charge the discounted price, then the profit is $800 for the firm charging the discounted price and $200 for the firm charging the regular price. When both firms charge the discounted price, the profit is $300 for each firm....
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This note was uploaded on 11/27/2011 for the course ECONOMICS 101 taught by Professor Kelly during the Fall '10 term at University of Wisconsin.
- Fall '10
- Game Theory