纳什均衡In a simple model of a duopoly,two firms produce the same good,for which each firm charges either a low price or a high price.Each firm wants to achieve the highest possible profit.If both firms choose High then each earns a profit of $10

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纳什均衡In a simple model of a duopoly,two firms produce the same good,for which each firm charges either a low price or a high price.Each firm wants to achieve the highest possible profit.If both firms choose High then each earns a profit of $10
纳什均衡
In a simple model of a duopoly,two firms produce the same good,for which each firm charges either a low price or a high price.Each firm wants to achieve the highest possible profit.If both firms choose High then each earns a profit of $1000.If one firm chooses High and the other chooses Low then the firm choosing High obtains no customers and makes a loss of $200,whereas the firm choosing Low earns a profit of $1200 (its unit profit is low,but its volume is high).If both firms choose Low then each earns a profit of $600.Each firm cares only about its profit.
1.Model this situation as a strategic game with ordinal preferences.Give the payoff function matrix.
2.Find the Nash equilibria (or equilibrium) of the game by finding the players’ best response functions.
3-EXERCISE 80.1(Nash equilibrium of second-price sealed-bid auction) Find a Nash equilibrium of a second-price sealed-bid auction in which player 4 obtains the object.
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纳什均衡In a simple model of a duopoly,two firms produce the same good,for which each firm charges either a low price or a high price.Each firm wants to achieve the highest possible profit.If both firms choose High then each earns a profit of $10
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