which model of the resulting duopoly market would you be inclined to use as the basis for your analysis?
The duopoly model we have been working with views Örms as choosing their quantities of output, with the market then setting a common price for the two Örms. Here is an alternative model. Firms 1 and 2 set prices p1 and p2. If p1 < p2, Örm 1 sells quantity A Bp1 and Örm 2 […]
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