Question: 20.9 Suppose that in the Bayesian-Cournot model described in Example 20.4 the firms have identical marginal costs (10) but information about demand is asymmetric. Specifically,

20.9 Suppose that in the Bayesian-Cournot model described in Example 20.4 the firms have identical marginal costs (10) but information about demand is asymmetric. Specifically, assume firm A knows the demand function (Equation 20.20) but firm B believes that demand may be either P= 120 -qA~qB or P=80-qA-qB, each with probability of 0.5. Assuming that the firms must announce their quantities simultaneously, what is the Bayesian-Nash equilibrium for this situation?

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