The subgame-perfect equilibrium of a two-stage game in which firms first choose capacities and then engage in a Bertrand price setting game resembles the equilibrium in:
a. the competitive model.
b. the Cournot model.
c. the cartel model.
d. the price leadership model.
Question 2
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview
b. scrimping on the tip for the waiter after a dinner date
c. offering an expensive engagement ring to your bride
d. Visiting the beauty salon before a big date
Game logic
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