The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who...
The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in game of whether or not to advertise. After each player chooses his or her best strategy and sees the result,
a. What is the Nash equilibrium?
b. If Bob and Jane colluded, what would be their economic profits?
|
Jane |
|||
|
Advertise |
Don't advertise |
||
|
Bob |
Advertise |
J: $6,000 B: $10,000 |
J: $3,000 B: $20,000 |
|
Don't advertise |
J: $12,000 B: $5,000 |
J: $10,000 B: $15,000 |
|
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