# Consider the following incomplete information game between Firm 1 (potential entrant) and Firm 2 (incumbent). Firm 1 has undertaken an R&D project for developing a new product. The outcome of the

Consider the following incomplete information game between Firm 1 (potential entrant) and Firm 2 (incumbent). Firm 1 has undertaken an R&D project for developing a new product. The outcome of the project is uncertain and private information of Firm 1. The new product is good with probability p and bad with probability 1-p. After learning the quality of the product, Firm 1 decides whether or not to enter the market. If Firm 1 does not enter, the payoffs are (0,4) (Firm 1 gets 0 and Firm 2 gets 4). If Firm 1 enters, payoffs depend on the quality of the product and the response of Firm 2. Firm 2 can start a price war (F-fight) or can accommodate the entry (A-accommodate). If the product is good, F leads to payoffs of (1,-2) while A generates payoffs of (2,-1). If the product is bad, F leads to payoffs of (-1,2) while A generates payoffs of (1,1).This game has a pooling equilibrium in which Firm 1 always enters (with a good and a bad product) if p= x, where:Option 1 : 2/3Option 2: 1/2Option 3: 3/2Option 4: 1/4Provide step by step explanation

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.