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A Japanese electronics company and a U.S. electronics company are both considering the development of a new graphene superconductor. If both companies develop the superconductor, then they will share the market and each will lose $10 billion. If only one company works on the superconductor, that company will make $100 billion profit. If neither develops the superconductor, then each company will make $0 profit. In addition to the above revenues, the Japanese government offers the Jana any a $15 billion subsidy to develop

A Japanese electronics company and a U.S. electronics company are both considering the development of a new graphene superconductor. If both companies develop the superconductor, then they will share the market and each will lose $10 billion. If only one company works on the superconductor, that company will make $100 billion profit. If neither develops the superconductor, then each company will make $0 profit. In addition to the above revenues, the Japanese government offers the Jana any a $15 billion subsidy to develop

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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A Japanese electronics company and a U.S. electronics company are both considering the development of a new graphene superconductor. If both companies develop the superconductor, then they will share the market and each will lose $10 billion. If only one company works on the superconductor, that company will make $100 billion profit. If neither develops the superconductor, then each company will make $0 profit. In addition to the above revenues, the Japanese government offers the Japanese company a $15 billion subsidy to develop the superconductor. 218 109 (a) Formulate a two-person game by stating the strategies for the two companies and giving the payoff matrix that includes the subsidy. Include opportunity costs. (b) Find all pure Nash and Berge equilibria, if any, for the game of (a). 109
Transcribed Image Text:A Japanese electronics company and a U.S. electronics company are both considering the development of a new graphene superconductor. If both companies develop the superconductor, then they will share the market and each will lose $10 billion. If only one company works on the superconductor, that company will make $100 billion profit. If neither develops the superconductor, then each company will make $0 profit. In addition to the above revenues, the Japanese government offers the Japanese company a $15 billion subsidy to develop the superconductor. 218 109 (a) Formulate a two-person game by stating the strategies for the two companies and giving the payoff matrix that includes the subsidy. Include opportunity costs. (b) Find all pure Nash and Berge equilibria, if any, for the game of (a). 109
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