# Telesource and Belair are two of the largest firms in the wireless carrier market in a certain country. Together they account for more than 80% of the market.a. Given that both firms differentiate their products, how is Nash equilibrium achieved in this market?b. Suppose both Telesource and Belair decide to collude and set the same price. Their payoffs from cheating

Telesource and Belair are two of the largest firms in the wireless carrier market in a certain country. Together they account for more than 80% of the market.

a. Given that both firms differentiate their products, how is Nash equilibrium achieved in this market?

b. Suppose both Telesource and Belair decide to collude and set the same price. Their payoffs from cheating and colluding are given in the matrix below. What is the Nash equilibrium in this game?

a. Given that both firms differentiate their products, how is Nash equilibrium achieved in this market?

b. Suppose both Telesource and Belair decide to collude and set the same price. Their payoffs from cheating and colluding are given in the matrix below. What is the Nash equilibrium in this game?

## This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

**Related Book For**