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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?
What is the difference between assignment of contract rights and delegation of contract duties? Illustrate your answer with examples.
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Please give me the references as well or I won't' complete the rating. Thank you. E-commerce is the trend that most companies are going toward now a days. You are to select one
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