Mathematics, 14.04.2020 23:10 ashhleyjohnson
Two firms are in the chocolate market. Each can choose to go for the high end of the market (high quality) or the low end (low quality). Resulting profits are given by the payoff matrix to the right.
Firm 1
Low High
Firm 2 Low -20, -30 900, 600
High 100, 800 50, 50
What outcomes, if any, are Nash equilibria?
Answers: 2
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Two firms are in the chocolate market. Each can choose to go for the high end of the market (high qu...
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