GAME THEORY- Please show your work and explanation so I
understand the process.
4. Firm A and B produce good x and the firms are in a normal
form game of price competition. Demand for good x is given as x = 8
– P, where P is equilibrium price. Each firm can pick either $2, 4
or 6 for his price. If prices match, they split demand and if
prices don’t match, then firm with lowest price meets entire...