Explain indicate the nash equilibrium

Reference no: EM133231970

Assignment:

In the busy township of MainCity, AllDay and SheepSkein are each deciding whether to set up an online store or a physical store. Here at MainCity the rental for physical store is very high. If both set up an online store, each gets a profit of $70 million, if one sets up an online store while the other sets up a physical store then the online store will earn a profit of $50 million and the physical store will earn a profit of $20 million. If both set up a physical store they each get a profit of $15 million.

Represent this in a 2x2 matrix of a normal form game and indicate the Nash Equilibrium(s). Explain.

Reference no: EM133231970

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