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somewhere between monopoly and perfect competition.
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So we'd like an outcome that looks a little bit like Cournot,
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but we'd like the strategy set to be prices,
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and this is going to do the trick.
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This is going to turn out to do the trick
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as you'll find out in your homework assignment.
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So how are we going to model this on the homework?
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The way we're going to model differentiated products
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is to imagine, just to take a simple example,
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imagine a city and this city has one long straight road through it.
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So this city is not a city in New England,
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it's a city in the Midwest,