(Table: Firms a and B VIII)

question 92

Essay

(Table: Firms A and B VIII)
a. In a one-period simultaneous game, what is the Nash equilibrium?
b. If this simultaneous game is played twice, once in each period, what will be the outcome in the first period? In the second period?

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Forward Contracts

Financial derivatives involving an agreement to buy or sell an asset at a predetermined future date and price.

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