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
The following is a table of activities associated with a project at Bill Figg Enterprises, their durations and what activities each must precede: Activity Duration (weeks) Prece

Complete a net material requirements schedule for: a) All items (10 schedules in all), assuming the requirement for each BOM item is 1. b) All 10 items, assum

Explain effects of indiscipline. Effects of Indiscipline: The indiscipline in industry brings in exact adverse effects. These are as given here:- a) Increase in the give

Which of the following is the set of all cost components that make up the fixed-order quantity total cost (TC) function? Answer a. Annual holding cost, annual ordering cost,

Which of the following in not an advantage of skimming pricing? A. It allows a manufacturer to quickly recover its research and development costs. B. It permits marketers to contro


String diagram is a simple tool for analyzing and designing work space such that movement can be minimized. The basic diagram is a scale plan or model on which a t

In this assignment, you will prepare an in-depth comparative analysis research paper between two different firms operating in two different countries but which have similar challen

Peter Lewiston was terminated on July 15, 2004, by the governing board of the Pine Circle Unified School District (PCUSD) for violation of the district sexual harassment policy. Pr

Predetermined Time Standards (PTS) - Process Design This is a work measurement technique whereby times established for basic human motions (classified according to the nature