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Find all of the nash equilibrium

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Reference no: EM133218181

Two concert promoters, Alpha and Best, must simultaneously (and independently) decide on the quality of the concert they will put on the same night: High (H), Medium (M), or Low (L) quality. A high-quality concert costs the promoter $3, a medium-quality concert cost $2, and a low-quality concert cost $1.

Their revenues are as follows:

If both choose high quality, or both choose low quality, then each promoter makes $4 in revenue.

If both choose medium quality, then each promoter makes $3 in revenue.

If one promoter chooses high quality, and the other promoter chooses low quality, then each promoter makes $6 in revenue.

If one promoter chooses medium quality, and the other promoter does not, then the medium quality promoter makes $4 in revenue, and the other promoter makes $3 in revenue.

A. The payoff to each firm is their profit. Draw the payoff (profit) matrix for this game.

B. Find all of the Nash equilibrium, if any.

Reference no: EM133218181

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