Nash equilibrium levels, Operation Management

Assignment Help:

2 enterprises (1 and 2), are in competition with each other by choosing advertising expenditures. The payoff functions of the two enterprises, if enterprise 1 chooses to spend x and enterprise 2 chooses y to spend in market 1, are given by

u1 (x; y) = 1 + (x - y) (2 - 3x)
u2 (x; y) = 1 + (y - x) (1 - 3y)

a) What is the best response functions of enterprise 1 and  enterprise 2.

b) Suggest  the Nash equilibrium levels of expenditures by each enterprise?


Related Discussions:- Nash equilibrium levels

Inventory, What is ABC analysis in inventory control? Discuss its advantage...

What is ABC analysis in inventory control? Discuss its advantages/disadvantages

Describe switch read in order to find the mac address, What part of a packe...

What part of a packet does a switch read in order to find the MAC address?

What is the influence of losses in the process in inspection, What is the i...

What is the impact of losses in the process in Inspection and Final Test?

Explain what could go wrong as a result, Imagine the worst possible reports...

Imagine the worst possible reports from a system. What is wrong with them? List as many problems as you can. What are the consequences of such reports? What could go wrong as a res

Describe customer service level for an inventory system, Discuss customer s...

Discuss customer service level for an inventory system within the context of quality management

Investment Management Assignment, Prepare an in-depth report recommending t...

Prepare an in-depth report recommending the appropriate investment of AUD$3 million for a five year investment period for a particular investment client. The investment portfolio i

What are advantage regarding problem-solving, Cultural diversity can provid...

Cultural diversity can provide a company competitive advantage regarding problem-solving. True False

Distinguish clearly between accidental deliberate and change, Question: ...

Question: Distinguish clearly between accidental change and deliberate change. Change is often resisted for multitude reasons. Critically explain the reasons thereof. Us

Describe potential key changes in technology, Discuss potential key changes...

Discuss potential key changes in technology, communications, and competition that Sigma will face in the future. Which will have the most impact on Sigma future marketing strategie

How a factory can produce high-quality products, Can a factory be fast, dep...

Can a factory be fast, dependable, flexible, produce high-quality products, and still provide poor service from a customer's perspective?

Write Your Message!

Captcha
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