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(Solved): Cournot game with bilateral information asymmetry.) Consider a Cournot duopoly operating in a market ...



Cournot game with bilateral information asymmetry.) Consider a Cournot duopoly operating in a market with inverse demand P (Q) = a ? Q, where Q = q1 + q2 is the aggregate quantity in the market. Now, however, suppose that EACH firm has probability ? of having unit costs of cL and (1 ? ?) of having unit costs of cH , where cH > cL. (d) Solve for the symmetric Bayesian Nash equilibrium of this game



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