There are two ice cream vendors, Ben and Jerry, on a crowded strip of beach. There are
Question:
a. Fill in the payoff matrix on next page, with payouts reflecting the number of customers each vendor receives. (Example: If Ben is at Position 1 and Jerry is at Position 4, Ben will get 400 beachgoers at locations 1 and 2, and Jerry will get 600 of the beachgoers at Positions 3, 4, and 5.)
b. Find the Nash equilibrium or equilibria in this game. Where are Ben and Jerry likely to end up locating?
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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