# Timing game. Use the results of the previous exercise to solve for the Nash equilibria of the…

Timing game. Use the results of the previous exercise to solve for the Nash equilibria of the…
Timing game. Use the results of the previous exercise to solve for the Nash equilibria of the endogenous timing game in which firms simultaneously choose whether to play “early” or to play “late”. If they both make the same choice (either “early” or “late”), the simultaneous Bertrand game follows: if they make different choices, a sequential game follows with the firm having chosen “early” being the leader. The payoffs are the equilibrium profits in each scenario. Discuss the economic intuition of the equilibria found. = 3 11. (20 points) Sequential price-setting with differentiated products. Consider a market with two horizontally differentiated products with the demand system given by Qi (Pi, Pj) = a – 2pi +P; for i, j = 1,2. Suppose that firm 1 has marginal cost ci = O and firm 2 has c2 = c and assume a > c> a > 0. The two firms compete in prices. a. (7 points) Compute the firms' equilibrium profits at the Nash equilibrium of the simultaneous Bertrand game. Determine which firm obtains the higher profit level. 1 b. (8 points) Compute the firms’ subgame perfect Nash equilibrium profits of the sequential scenario when i) firm 1 is the leader, and ii) when firm 2 is the leader. c. Determine whether firm 2 has a second-mover advantage and firm 1 has a first-mover advantage. Explain.   May 05 2022 06:27 PM

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.