Draw the extensive form of the following game, a version of the Cournot duopoly game. Two firms compete in a homogeneous good market, where the firms produce exactly the same good.
The firms simultaneously and independently select quantities to produce. The quantity selected by firm i is denoted qi and must be greater than or equal to zero, for i = 1, 2. The market price is given by p = 12 - q1 - q2 . For simplicity, assume that the cost to firm i of producing any quantity is zero.
Further, assume that each firm's payoff is defined as its profit. That is, firm i's payoff is (12 - qi - qj)qi , where j denotes firm i's opponent in the game.