Условие:
There are two firms indexed by i = 1, 2 producing differentiated goods at zero costs. Firm i’s\ndemand function is given by\nDi(pi
, pj ) = 1 − pi + αipj where αi ∈ [0, 1)
(a) Suppose that firms simultaneously choose their prices. Find a Nash equilibrium in pure\nstrategies.
(b) Now suppose that firms collude and decide jointly on (p1, p2) to maximize their total\nprofits. Find the market outcome and compare to part (a).

