Re: DSE DOUBT
Posted by Sris on Jun 11, 2015; 6:30am
URL: http://discussion-forum.276.s1.nabble.com/DSE-DOUBT-tp7597587p7597642.html
suppose there are three profit maximizing firms who produce a homogeneous good at zero cost. the inverse dd function for this good is p= 1-q where p=price and q =total output produced by these firms.suppose the firms choose their output sequentially ,with firm 1 choosing q1 first, firm 2 choosing q2 next(having seen q1) and firm 3 chooses last (having seen q1 and q2 )
if these firms behave rationally (ie act so as to maximize profits) given their info and anticipate rational behaviour by their rivals,then what will the outputs chosen by the firms.
(this is stakelberg with an extra sequential follower thrown in)
PLZ HELPPPP.....
URL: http://discussion-forum.276.s1.nabble.com/DSE-DOUBT-tp7597587p7597642.html
suppose there are three profit maximizing firms who produce a homogeneous good at zero cost. the inverse dd function for this good is p= 1-q where p=price and q =total output produced by these firms.suppose the firms choose their output sequentially ,with firm 1 choosing q1 first, firm 2 choosing q2 next(having seen q1) and firm 3 chooses last (having seen q1 and q2 )
if these firms behave rationally (ie act so as to maximize profits) given their info and anticipate rational behaviour by their rivals,then what will the outputs chosen by the firms.
(this is stakelberg with an extra sequential follower thrown in)
PLZ HELPPPP.....
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