There are several possibilities of how this sequential game will be played. We want to use the Froeb rule of look ahead and reason back.
Use Figure 15-1 from the textbook as your starting point to address the following:
– Can, and how does, the entrant succeed?
– Is the incumbent ever in control of this game?
– You may wish to review the old game known as Duopoly, as well as Antione- Augustin Cournot, to help inform your post.
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