Economics - Game Theory & Business Strategy  Inverse Market Demand for tires is P = 200 - .01Q  We assume the manufacturer sets a Price, 'X', for the tires and the manufacrturer moves first, selecting 'X' before any sales decisions are made.   In this variation, we assume there are 3 retail firms, each with Market Power.   The firms (1,2,3) make their sales decisions (q1,q2,q3) simultaneously, taking the manufacturer's price X as given.   Total market sales, Q, then equal q1 + q2 + q3.   We assume the only cost for the retailers is the cost 'X' for each tire.   Additionally, the manufacturer produces the tires at a Marginal Cost of $10 a tire.  **** Write out the Extensive form of this game ****

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter8: Game Theory
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Economics - Game Theory & Business Strategy 

Inverse Market Demand for tires is P = 200 - .01Q 

We assume the manufacturer sets a Price, 'X', for the tires and the manufacrturer moves first, selecting 'X' before any sales decisions are made.  

In this variation, we assume there are 3 retail firms, each with Market Power.  

The firms (1,2,3) make their sales decisions (q1,q2,q3) simultaneously, taking the manufacturer's price X as given.  

Total market sales, Q, then equal q1 + q2 + q3.  

We assume the only cost for the retailers is the cost 'X' for each tire.  

Additionally, the manufacturer produces the tires at a Marginal Cost of $10 a tire. 

**** Write out the Extensive form of this game ****

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