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Showing 1 to 1 of 1 for “"Sub-game Perfect Nash Equilibrium"”.

  1. Essays in Economic Theory

    … rate than the small firm. I find the unique sub-game perfect Nash equilibrium strategy for this game. At the equilibrium, the large firm will stay longer in the race, while the small firm will quit earlier. The large firm's optimal stopping time is not affected by the competition, while the …

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