Two firms must simultaneously decide whether to enter a market. The payoffs resulting from their decisions are illustrated in the figure to the right. Determine the mixed-strategy Nash equilibrium for this game. The mixed-strategy Nash equilibrium is for Firm 1 to not enter with probability 0₁ = probability 0₂ = (Enter your responses rounded to two decimal places.) and for Firm 2 to not enter with Don't enter Firm 2 Enter Don't enter 0 0 Firm 1 0 Enter 0 -4 2 -2

Two firms must simultaneously decide whether to enter a market. The payoffs resulting from their decisions are illustrated in the figure to the right. Determine the mixed-strategy Nash equilibrium for this game. The mixed-strategy Nash equilibrium is for Firm 1 to not enter with probability 0₁ = probability 0₂ = (Enter your responses rounded to two decimal places.) and for Firm 2 to not enter with Don't enter Firm 2 Enter Don't enter 0 0 Firm 1 0 Enter 0 -4 2 -2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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