ECON106P: Midterm Exam
Yangbo Song
July 9, 2014
1
Multiple Layers of Vertical Separation (6 pts.)
Consider a retail market with demand function P = a bq. There is one manufacturer, denoted M ,
and n distributors, denoted 1, 2, , n. The distributors are ve
ECON106P: Pricing and Strategy
Yangbo Song
Economics Department, UCLA
June 30, 2014
Yangbo Song
UCLA
June 30, 2014
1 / 31
Game theory
Game theory is a methodology used to analyze strategic situations in
economics, politics, psychology, etc.
There are mult
ECON106P: Assignment 1
Yangbo Song
Due on July 7, 2014
1
Two-Part Tari
Consider a monopoly and two consumers 1 and 2. The consumers demand functions are P1 = 12 q1
and P2 = 10 q2 and the monopolys cost function is C(q) = 2q. Assume that the monopoly uses
ECON106P: Pricing and Strategy
Yangbo Song
Economics Department, UCLA
July 16, 2014
Yangbo Song
UCLA
July 16, 2014
1 / 33
Games with incomplete information
So far we have focused our discussion on games with complete
information: players know exactly each
ECON106P: Exercises
Yangbo Song
July 28, 2014
1
Exercise 1
Consider a repeated game between a supplier (player 1) and a buyer (player 2). These two parties
interact over an innite number of periods. In each period, player 1 chooses a quality level q [0, 5
ECON106P: Assignment 2
Yangbo Song
Due on July 28, 2014
1
Innitely Repeated Cournot Competition
A total of n rms are Cournot competitors in the market. The market demand function is given by
P = 20 Q, and each rm is producing at zero cost. They play the C
These are some extra questions for those of you interested in challenging yourself. They have no particular relationship to exams etc. just for your own interest. For a large number of challenging problems, check out the graduate level textbook Classical