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

Line balancing of product layouts, Line Balancing of Product Layouts ...

Line Balancing of Product Layouts A major consideration in the design of product layouts is that of bottlenecks; just as the strength of a chain is determined by its weakest

Explain the processing times for the five job, Suppose SPT rule is being us...

Suppose SPT rule is being used in a "dynamic" scheduling problem. There are five jobs A,B,C,D, and E ready to be processed at the present time. The processing times for the five jo

Describe how you might use job enlargement, Explains how you might use job ...

Explains how you might use job enlargement, job rotation, and/ or job enrichment to in motivating custodians at Norman dale CC.

Explain long-term relationship between the inventory, The long-term relatio...

The long-term relationship between the inventory, throughput, and flow time of a production system in steady state is called which of the following?

Explain what is the forecast error, The numbers of patient arrivals to the ...

The numbers of patient arrivals to the ER department at a local hospital for the past 5 weeks are: week: 1 , 2 , 3 , 4 , 5 arrivals: 405 ,420 , 400 , 380 , 411 a) Compute a three-w

Explain implement any change in strategy, 1. Describe how you think the hot...

1. Describe how you think the hotel's management will: (a) make sure that the way it manage the hotel is appropriate to the way it competes for business; (b) implement any change i

Illustrate the strategic positioning tools, Illustrate the strategic positi...

Illustrate the strategic positioning tools? Strategic positioning tools according to Reck and Long: • Passive (as clerical and transaction based) purchasing functions only o

Explain drum-buffer-rope, According to Elyahu Goldratt, the TOC system uses...

According to Elyahu Goldratt, the TOC system uses a scheduling approach called _____. drum-buffer-rope drum-buffer-string drum-rope-buffer drum-buffer-line

Explain safety stock would provide a stock out risk, The injection moulding...

The injection moulding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 g

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