This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Game e), which shows us that . Game f) Two ﬁrms produce the exact same good and choose output levels q i while facing cost function c i ( q i ). Demand determines a price depending upon total output: p ( q 1 + q 2 ). Suppose both ﬁrms are proﬁt maximizers. Formalize this as a normal form game. Players: Strategy Space: Preferences: Game f) shows us that normal form games . 1 X Y Z A 1 , 3 1 , 1 8 , B 4 , 3 1 , 4 3 , 2 C 3 , 2 , 1 5 , g) X Y Z A 6 , 3 5 , 1 , 2 B , 1 4 , 6 6 , C 2 , 1 3 , 5 2 , 8 h) 2...
View
Full Document
 Fall '08
 Charness,G
 Game Theory

Click to edit the document details