ECON 4610: Industrial Organization
(formerly known as ECON 3510)
Department of Economics, Cornell University
RESEARCH PROPOSAL
Due Date: Monday, November 17 in class. Late submissions will be accepted up until Friday,
November 21 for a maximum of 70% cred
Problem Set 2
ECON 4610
October 22, 2014
Due: October 29, 2014
Motivate your arguments carefully and show your work.
1. There are 2 rms in an industry producing identical products. The
market inverse demand curve is
P (Q) = 1 Q
where Q = q1 +q2 . The tota
Problem Set 3
ECON 4610
December 3, 2014
1) Suppose a monopoly rm faces the following demands in two dierent
cities A and B. The demand functions are as follows
qA = 10 pA
qB = 20 pB
The monopolist faces a marginal cost of 2 for each unit of good produced
Problem Set 1
ECON 4610
September 19, 2014
Due in class on Wednesday, September 24, 2014. Late submissions will be
accepted in class on Monday, September 29 for a maximum of 70% credit.
1. Consider the following normal form game
row player
T
H
column play
Problem Set 2 Solutions
ECON 4610
November 3, 2014
November 3, 2014
Motivate your arguments carefully and show your work.
1. There are 2 rms in an industry producing identical products. The
market inverse demand curve is
P (Q) = 1 Q
where Q = q1 +q2 . The
Problem Set 1 Solutions
Econ 4610
1a) First let us check if there is any pure strategy Nash Equilibrium (NE).So
lets check the best responses of each player to the other players strategies:
Row Player:
i) If column player plays A then row player will play
Problem Set 3
ECON 4610
November 17, 2014
Due: November 24, 2014
1) Suppose a monopoly rm faces the following demands in two dierent
cities A and B. The demand functions are as follows
qA = 10 pA
qB = 20 pB
The monopolist faces a marginal cost of 2 for ea