irms A and B under duopoly (oligopoly) are competing in an engine production market. Firm A’s marginal cost is $14 while firm B’s is $15. They play a sequential quantity setting- game and firm B is a first mover. Who has an advantage in this game? Now suppose they play a sequential price setting-game and firm B is a first mover. Who has an advantage in this game

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter15: Imperfect Competition
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Firms A and B under duopoly (oligopoly) are competing in an engine production market. Firm A’s marginal cost is $14 while firm B’s is $15. They play a sequential quantity setting- game and firm B is a first mover. Who has an advantage in this game? Now suppose they play a sequential price setting-game and firm B is a first mover. Who has an advantage in this game?

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