Part 1 : Answer the following Games below. For each game below, please illustrate and show how the Nash Equilibrium is derived. Briefly explain the result of each game in not less than 3 sentences. b. You are examining two companies that sell identical products. Company 1 can sell that produce for either Php 17 or Php 27. Meanwhile, Company 2 can sell the produce for either Php 14 or Php 30. The pay-off matrix represents what would be their potential profit for each strategy. What is the Nash Equilibrium? Company 2 Php 14 Php 30 Php 17 3 Compan y1 Php 27 4 7 5 3 4 1 5 LO

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Part 1
: Answer the following Games below. For each game below, please illustrate
and show how the Nash Equilibrium is derived. Briefly explain the result of each game in not
less than 3 sentences.
b.
You are examining two companies that sell identical products. Company 1 can sell
that produce for either Php 17 or Php 27. Meanwhile, Company 2 can sell the produce for
either Php 14 or Php 30. The pay-off matrix represents what would be their potential
profit for each strategy. What is the Nash Equilibrium?
Company 2
Php 14
Php 30
Php 17
3
Compan
y 1
Php 27
5
4
3
4
1
5
N
Transcribed Image Text:Part 1 : Answer the following Games below. For each game below, please illustrate and show how the Nash Equilibrium is derived. Briefly explain the result of each game in not less than 3 sentences. b. You are examining two companies that sell identical products. Company 1 can sell that produce for either Php 17 or Php 27. Meanwhile, Company 2 can sell the produce for either Php 14 or Php 30. The pay-off matrix represents what would be their potential profit for each strategy. What is the Nash Equilibrium? Company 2 Php 14 Php 30 Php 17 3 Compan y 1 Php 27 5 4 3 4 1 5 N
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