Question: Problem 3. * Assume a Cournot game with three identical firms that produce a homogenous product at constant marginal cost c and face linear demand

Problem 3. * Assume a Cournot game with three identical firms that produce a homogenous product at constant marginal cost c and face linear demand p =1-Q. Show that this game has a unique Nash equilibrium in pure strategies but is not solvable by the iterated deletion of dominated strategies (unlike the game with two firms!)

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