ECON 201 Any help is Greatly Appreciated! In order to submit this assignment, yo
ID: 1141166 • Letter: E
Question
ECON 201
Any help is Greatly Appreciated!
In order to submit this assignment, you will use this webform to enter text with your answers. Be sure that your responses model clear economic reasoning and addresses each of the following 1.) Consider the discrete Bertrand game described in the Oligopoly lecture notes/video. According to the rules of this game each student selects a number from the set (0,1,2, 3, 4, 5, 6, 7, 8, 9, 10] and is randomly matched with another student. Whoever has the lowest number wins that amount in dollars and whoever has the high number wins zero. In the event of ties, each student receives half their number in dollars. What number would you select if you played this game in our online class? Explain your reasoning 2.) Continue to consider this discrete Bertrand model, but now assume that each student has a constant cost of 5 that is deducted from all payoffs. whoever has the low number wins their number, minus 5. Whoever has the high number loses 5 total. In the event of a tie, each student wins an amount equal to their number divided by two, then minus five. Find any Nash equilibria in this game. Explain your reasoning. Hint: It is perfectly fine for both players to have losses in equilibrium! So There are more than 1 Nash equilibria.Explanation / Answer
In general, An oligopoly is a market form wherein a market or industry is dominated by a small number of large sellers. Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers. Oligopoly has its own market structure. With few sellers, each oligopolist is likely to be aware of the actions of the others. According to game theory, the decisions of one firm therefore influence and are influenced by decisions of other firms.
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