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Unformatted text preview: 177.77778 191.84028 Research Intensity Choice High Low High 158.51 158.51 191.84 177.78 Low 177.78 191.84 206.25 206.25 Nash Equilibrium 206.25 206.25 This spreadsheet allows you to investigate the equilibrium for a three-stage game in which two Cournot firms first choose their research intensities, then the degree of technology spillover they will allow and finally compete in the product market. The Demand Function is P = A - B.Q, Marginal production costs are constant at c per unit, Research Costs are D*x^2 where x is the Research Intensity. Each firm can choose the degree of technology spillover...
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- Fall '10
- Perfect Competition