Question: Consider the same setting except that firms face a different demand function and that firms set prices at stage 3. Let demand be Q i

Consider the same setting except that firms face a different demand function and that firms set prices at stage 3. Let demand be Q_i = 1 - p_i- dp_j with d > 0 so that products are substitutes and d < 1. Characterize the equilibrium of this game. Does firm 2 have an incentive to share its private information?

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