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Three Firms compete in a Cournot market. (i.e. Firms produce homogeneous goods and
compete by simultaneously selecting quantities.) Each Firm has a constant marginal cost
of $80 per unit and market demand satisfies P(Q) = 240 - 2Q.
a. Find the Nash equilibrium of the one-shot Cournot market.
b. Suppose that the market is repeated infnitely and that the three Firms collude to
implement monopoly industry profts. Find the critical discount factor if the cartel
employs the grim trigger strategy. Show your working

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关键词：SIMULTANEOUS homogeneous equilibrium Quantities implement 求助 博弈

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