That is firm is payoff is pqi where j denotes firm is


Consider a version of the Cournot duopoly game, which will be thoroughly analyzed in Chapter 10. Two firms (1 and 2) compete in a homogeneous goods 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 = 2 - 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 pqi, where j denotes firm i's opponent in the game. Describe the normal form of this game by expressing the strategy spaces and writing the payoffs as functions of the strategie

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Management Theories: That is firm is payoff is pqi where j denotes firm is
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