Practice+Final+2

Thiscompanyiscalledalphasolaralphasolarhasone

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Unformatted text preview: 
in
this
game?

What
is
the
Nash
equilibrium?


 b) [10
points]
Suppose
now
that
your
firm,
BAStar,
has
the
possibility
of
an
early
 credible
commitment
to
a
location.

In
other
words,
you
can
choose
a
location
 before
K‐R‐Us
does
so,
and
when
the
latter
makes
its
location
choice
it
will
do
 so
knowing
what
location
BAStar
has
chosen.

Represent
and
solve
this
game.


 c) [5
points]
Based
on
the...
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