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

Explain fledible cross functional teams, Strategy Highlits 11.2 dicusses th...

Strategy Highlits 11.2 dicusses the informal oranizational structure of W.L.Gore and Associates. Go to the firm's Website (www.gore.com) and review the scope of the firm. a. Wha

Explain should galanz have evolved from being an oem, Should Galanz have ev...

Should Galanz have evolved from being an OEM to being an OBM?Is Galanz structured to compete as an OEM? Why or why not?

Explain how to expand company, How to expand company, drive growth, and not...

How to expand company, drive growth, and not sacrifice margins?

Exam of Operation Management, I will have an exam which has 100 Questions. ...

I will have an exam which has 100 Questions. I will have just 24 hours to complete it. My question about that is if you can answer them within this time and handle the answers to m

Find the probability that both service clerks are idle, Sharp Discounts Who...

Sharp Discounts Wholesale Club has two service desks, one at each entrance of the store. Customers arrive at each service desk at an average of one every twelve minutes. The servic

What does mean owns real estate in fee simple absolute, If someone owns rea...

If someone owns real estate in fee simple absolute, what does that mean?

Define what is span of management, Define what is span of management. S...

Define what is span of management. Span of Management termed as the number of subordinates working under a manager.

Compute the average number of customers waiting at lhs, During busy periods...

During busy periods, a new customer walks into LHS every 15 mins. (with a standard deviation of 15 mins). At SHC, a customer walks in every hour (with a standard deviation of 1 hou

What is the ex post redistribution, 1. Two individuals, Vic and Val, are bo...

1. Two individuals, Vic and Val, are both working. Vic faces a 10 percent chance of becoming unemployed for three months and losing $12,000 of income. Val's probability of becoming

General model of the operations function, General Model of the Operations F...

General Model of the Operations Function This figure illustrates the basic concept of the operations function. Firstly inputs are transformed (converted) to outputs with the m

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