Bill and Jane are the only producers in a local market and they are considering if...
Bill and Jane are the only producers in a local market and they are considering if it makes sense to produce good quality or a bad quality product.
If both choose a good quality product, each of them has a profit of 6.15.
If both choose a bad quality product, each of them has a profit of 7.
If one chooses a good quality product while the other chooses a low-quality product, then the one choosing a good quality product will earn 8 and the other 5.
In the Nash equilibrium, what is Jane’s profit?
(Please enter two decimals in your answer and omit the dollar sign and commas)
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