Nash equilibrium levels, Operation Management

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?

Posted Date: 3/12/2013 3:43:13 AM | Location : United States

Related Discussions:- Nash equilibrium levels, Assignment Help, Ask Question on Nash equilibrium levels, Get Answer, Expert's Help, Nash equilibrium levels Discussions

Write discussion on Nash equilibrium levels
Your posts are moderated
Related Questions
How might incentives stimulate positive organizational behaviours? Discuss the place of rewards and punishments for organizational members. What is it important to know? What incen

Discuss the advantages of using work sampling to understand how employees allocate their time among work activities.

Identify the feasible region for the following set of constraints: 3A - 2B ? 0 2A - 1b ? 200 1A ? 150 A, B >=0 This will need to include graphing or I will not ra

how a firm could attain a competitive advantage through operation management

1. What are personality traits? Define and discuss the Big Five personality traits. Define and discuss other personality traits that affect managerial behaviour. 2. Explain Rike

A manufacturer uses a purchase part who's demand over any time period of length t (in years) can assume to be normally distributed with mean 200t and variance 400t. The part cost $

1. What are the steps in the method study procedure?  Answer: Select, record, examine, develop, install, maintain.

A retail outlet has its own production facility for producing denim cloth. The ordering cost ($150) is the cost of setting up the production process to make the denim cloth. The ca

Competence - Customer Satisfaction and Service Quality Means possession of the required skills and knowledge to perform the service. It involves: knowledge and skill of the c

Explain the role of ethics and social responsibility in developing a strategic plan, considering stakeholder needs. Explain how your ethical perspective has evolved throughout t