Compare the simultaneous move Nash equilibrium solution (for prices and profits) with the sequential one (leader follower) What happens if they both act as leaders Compare the simultaneous move Nash equilibrium solution (for prices and profits) with the cooperative solution Given the cooperative solution prices, does it pays the two firms to break the agreement Explain Consider two duopolists with differentiated products, who compete in prices Their demand and cost functions are given by q1 2 2p1 P2, 92 2 2p2 P1, Ci qi, where qi and pi are their quantities and prices Consider two duopolists with differentiated products, who compete in prices Their demand and cost functions are given by q1 2 2p1 P2, 92 2 2p2 P1, Ci qi, where qi and pi are their quantities and prices

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Question: Compare the simultaneous move Nash equilibrium solution (for prices and profits) with the sequential one (leader/follower)? What happens if they both act as leaders? Compare

Compare the simultaneous move Nash equilibrium solution (for prices and profits)

Compare the simultaneous move Nash equilibrium solution (for prices and profits) with the sequential one (leader/follower)?
What happens if they both act as leaders?
Compare the simultaneous move Nash equilibrium solution (for prices and profits) with the cooperative solution?
Given the cooperative solution prices, does it pays the two firms to break the agreement? Explain.

Consider two duopolists with differentiated products, who compete in prices. Their demand and cost functions are given by q1 = 2 2p1 + P2, 92 = 2 2p2 + P1, Ci = qi, where qi and pi are their quantities and prices. Consider two duopolists with differentiated products, who compete in prices. Their demand and cost functions are given by q1 = 2 2p1 + P2, 92 = 2 2p2 + P1, Ci = qi, where qi and pi are their quantities and prices

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