Economics - Game Theory & Business Strategy Inverse Market Demand for tires is P = 200 - .01Q We assume the manufacturer sets a Price, 'X', for the tires and the manufacrturer moves first, selecting 'X' before any sales decisions are made. In this variation, we assume there are 3 retail firms, each with Market Power. The firms (1,2,3) make their sales decisions (q1,q2,q3) simultaneously, taking the manufacturer's price X as given. Total market sales, Q, then equal q1 + q2 + q3. We assume the only cost for the retailers is the cost 'X' for each tire. Additionally, the manufacturer produces the tires at a Marginal Cost of $10 a tire. **** Write out the Extensive form of this game ****
Economics -
Inverse Market Demand for tires is P = 200 - .01Q
We assume the manufacturer sets a
In this variation, we assume there are 3 retail firms, each with Market Power.
The firms (1,2,3) make their sales decisions (q1,q2,q3) simultaneously, taking the manufacturer's price X as given.
Total market sales, Q, then equal q1 + q2 + q3.
We assume the only cost for the retailers is the cost 'X' for each tire.
Additionally, the manufacturer produces the tires at a Marginal Cost of $10 a tire.
**** Write out the Extensive form of this game ****
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