Find the nash equilibrium strategies

Assignment Help Macroeconomics
Reference no: EM13198794

Glassworks and Clearsmooth compete in the local market for windshield repairs. The market size (total available profits) is $10 million per year. Each firm can choose whether to advertise on local television. If a firm chooses to advertise in a given year, it costs that firm $3 million. If one firm advertises and the other does not, then the former captures the whole market. If both firms advertise, they split the market 50:50.

Suppose the two windshield-repair firms know they will compete for just one year. Write down the payoff matrix for this game. Find the Nash equilibrium strategies.

Reference no: EM13198794

Questions Cloud

Find the subgame perfect nash equilibrium of the game : At the start of the game, A will decide how much to spend on advertising. B, after learning how much A has spent, can then either match A's advertising expenditure or spend nothing on advertising.
Why beach and alex chose cycling in the first stage : Alex and Barbara will simultaneously choose to go to the beach or to go cycling without talking to one another. Alex prefers beach and Barbara prefers cycling, but they prefer to be with one another.
Depressants is an opioid : Which one of the following depressants is an opioid?
Wisdom and technological development : Wisdom and Technological Development, How should we go about making decisions about future technologies? Why? Examples. Please answer in 80 words or less.
Find the nash equilibrium strategies : Glassworks and Clearsmooth compete in the local market for windshield repairs. The market size (total available profits) is $10 million per year. Each firm can choose whether to advertise on local television.
Discuss upon how dhs and fema function in a proper manner : Discuss upon how DHS and FEMA "function in a proper manner" What problems does this create specifically?
Theorist''s contribution to psychology : Include your chosen theorist's contribution to psychology and whether or not his work is still used in the field. Discuss how the behavioral concepts are used, giving specific examples.
What is dealers annual rate of return on loan transactions : Assume that you are going to buy a car work $25,000. You will be able to make a down payment of $3,000. The remaining 22,000 will be financed by the dealer. The dealer computes your monthly payment to be $547.47 for 28 months of financing.
Example of a critical decision : Give an example of a critical decision that would be needed to be made by the FEMA agency in a short amount of time.

Reviews

Write a Review

Macroeconomics Questions & Answers

  What are the affects on monetary base

The Federal Reserve buys bonds in the open market, an open market purchase. What are the affects on monetary base, the money multiplier and money supply. The choices are increasing, decreasing, or unchanged.

  Compute the related total revenue and marginal revenue

Evaluate the price and the output information in the following table. Calculate the related total revenue and marginal revenue.

  Similar piece of equipment- delivered and installed

You can lease the similar piece of equipment, delivered and installed, for an all-in cost of $65,000 per year, for three years, payable at the beginning of each year.

  Supply and foreign exchange market operation

According to the quantity theory of money, what is the effect of increase in quantity of money?

  Looking to raise profitability in competitive marketplace.

Looking to raise profitability in perfectly competitive marketplace. How to efficiently plan production?

  Shifting the demand curve

Past month Jones Hat Corporation sold 100 hats at $10 each. This month it increased the value of hats to $11 and sold 101 hats.

  The impact of real gdp the unemployment rate

Also address the impact of real GDP, the unemployment rate, and the inflation rate as measured by the consumer price index (CPI).

  Does the federal court have jurisdiction

Henry, a resident of Nevada, sued Adam, a resident of Utah, in the federal court of California. He sought $60,000 damages for personal injuries arising from an automoblie accident that occurred in Los Angeles, California.

  What are the equilibrium price and quantity

Draw a graph of the market for banana. What are the equilibrium price and quantity? Explain why. If the price of banana was $1.50 a box. What would be the situation in the banana market (shortage or surplus)? Explain why and how the price and quanti..

  What was it about each of the products that made your demand

Identify three separate things that you personally have purchased in the past month. Now, for each of those goods answer this question: If the price had been 50% higher would I still have bought that thing Or would I have said.

  Utilizing areas as manufacturing and information technology

Utilizing such areas as manufacturing and information technology or any related industry / areas that have had high job growth rates explain a scenario that would cause a shift in labor supply and demand.

  Calculate and interpret the z-score for a sales associate

Suppose annual salaries for sales associates from a particular store have a mean of $32,500 and a standard deviation of $2,500. Calculate and interpret the z-score for a sales associate who makes $36000. Suppose that the distri..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd