Computation of nash equilibrium

Reference no: EM1315170

Two firms dominate the instructional market for metal costing. These are DuPoint abs BASF. Each has similar costs and production facilities each must set its production (measyred in millions of tons) several months in advance so that the strategic variable for each is quantity. The BASF profit is given first in each payoff pair.

DuPoet's Production
BASF Production	30		40	50	60
	30	$1700,$1700	$1300,$1900	$1000,$2000	$950,$1850
	40	$1900,$1300	$1500,$1500	$1200,$1600	$1100,$1500
	50	$2000,$1000	$1600,$1200	$1300,$1300	$1000,$1200
	60	$1850,$950	$1500,$1100	$1200,$1000	$900,$900

a. What is the Nash Equilibrium output for his assuming that the two firms choose their production quantities simultaneously?

b. What would be the equilibrium if dupoint could choose its output first and BASF chose second, taking DuPoet's decision as given?

Reference no: EM1315170

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