Donald and Jack across from each other. Donald sells apple juice and Jack sells lemonade during hot summer days. Both are deciding whether to sell their beverages for $1 or $2. They revenue schedule is shown below. Assuming that there is NO COLLUSION, what is the Nash Equilibrium here (best strategy for each to take)? Revenue Schedule Jack, $1 Jack, $2 Donald, $1 Donald $35, Jack $50 Donald $55, Jack $24 a. They both sell for $1. ☐b. Not enough information is known. c. They both sell for $2. ☐d. Jack sells for $2. Donald sells for $1. ☐e. Jack sells for $1. Donald sells for $2. Donald, $2 Donald $10, Jack $70 Donald $16, Jack $24

Donald and Jack across from each other. Donald sells apple juice and Jack sells lemonade during hot summer days. Both are deciding whether to sell their beverages for $1 or $2. They revenue schedule is shown below. Assuming that there is NO COLLUSION, what is the Nash Equilibrium here (best strategy for each to take)? Revenue Schedule Jack, $1 Jack, $2 Donald, $1 Donald $35, Jack $50 Donald $55, Jack $24 a. They both sell for $1. ☐b. Not enough information is known. c. They both sell for $2. ☐d. Jack sells for $2. Donald sells for $1. ☐e. Jack sells for $1. Donald sells for $2. Donald, $2 Donald $10, Jack $70 Donald $16, Jack $24

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.9P

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Team 2 plays A Team 2 plays B Team 1 plays A 2, 1 0,0 Team 1 plays B 0,0 1, 2 Consider the game above. Which of the following is a Nash Equilibrium of the game? O Team 1 plays A two thirds of the time and plays the rest of the time, while team 2 plays A two thirds of the time and plays B the rest of the time. Team 1 plays A one quarter of the time and plays B the rest of the time, while team 2 plays A one quarter of the time and plays B the rest of the time. Team 1 plays A one quarter of the time and plays B the rest of the time, while team 2 plays A three quarters of the time and plays B the rest of the time. O None of the other answers are correct. Team 1 plays A two thirds of the time and plays B the rest of the time, while team 2 plays A one third of the time and plays B the rest of the time.
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