15 caricature artists must decide whether to operate outside the aquarium (location A) or at the beach boardwalk (location B). The more artists located at one of these locations, the more profit they earn. This is because when more artists cluster together, their collective presence becomes more significant thus attracting more customers. If n artists choose location A, each artist earns n² If m artists choose location B, each artist earns 2m² 14. Find all the pure strategy Nash equilibria in this game. (Treat artists as integers, not a continuous variable) 1

15 caricature artists must decide whether to operate outside the aquarium (location A) or at the beach boardwalk (location B). The more artists located at one of these locations, the more profit they earn. This is because when more artists cluster together, their collective presence becomes more significant thus attracting more customers. If n artists choose location A, each artist earns n² If m artists choose location B, each artist earns 2m² 14. Find all the pure strategy Nash equilibria in this game. (Treat artists as integers, not a continuous variable) 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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