we did the two-player quantity game. If there are three firms in the market, are there any dominated strategies? Can one apply iterated elimination of dominated strategies to predict what each of the three firms will do?
Note that in this problem you should assume that the three firms each have zero costs. Firm i’s strategy is to produce a quantity qi to put in the market. Each of the firms understands that the ultimate price in the market will be
P = 100 – (q1 + q2 + q3).