A medical company, MEDXYZ, has back-engineered the Pfizer-Biontech vaccine for the COVID-19 virus even though Pfizer-Biontech already

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A medical company, MEDXYZ, has back-engineered the Pfizer-Biontech vaccine for the COVID-19 virus even though Pfizer-Biontech already has a patent for this vaccine. Consider this as a game theoretic problem.

4. Now, change the payoff structure of the game to allow for a dominant strategy for one of the players.

a. (6 pts) What is the new Nash equilibrium?

b. (9 pts) Is this new Nash equilibrium Pareto-efficient? Explain why.

5. (6 pts) Is this game set-up closer to a Cournot equilibrium or to a Stackelberg equilibrium? Explain why.

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Microeconomics

ISBN: 978-1429283434

3rd edition

Authors: Paul Krugman, Robin Wells

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Posted Date: Feb 15, 2021 05:32 AM

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A medical company, MEDXYZ, has back-engineered the Pfizer-Biontech vaccine for the COVID-19 virus even though Pfizer-Biontech already

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Microeconomics

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