Regarding the dynamic monopoly game, can you find ownership values for Hal and Laurie that make scheme A optimal?
Can you find values that make scheme B optimal?
Consider the application on dynamic price competition with capacity constraints presented at the end of this chapter.
In the game described in the text, is there a subgame perfect Nash equilibrium in which the players choose sales caps of less than 15 in the first period? If so, describe such an equilibrium and show that the firms cannot gain by deviating. If not, explain why.