Find the nash equilibrium using the calculus method

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Reference no: EM131004585

Two folks are fishing next to each other. Let x and y denote the amount of fish (in pounds) caught by players 1 and 2, respectively. Player 1’s payoff from catching fish isπ_1 (x,y)=2x-x^2/4-xy/10 π_1 (x,y)=2x-x^2/4-xy/10 . Similarly, the payoff of player 2 is . π_2 (x,y)=2y-y^2/4-xy/10

Find the Nash equilibrium using the Calculus method.

How much fish would player 1 catch if he was the only one fishing? Compare it to the Nash equilibrium outcome and conclude whether overfishing or underfishing occurs in equilibrium, compared to the individual fishing case.

Reference no: EM131004585

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