Question: It is the year 2099, and the moon has been colonized by humans. Alcatel (the French telecom equipment company) and Nokia (the Finnish telecom equipment
It is the year 2099, and the moon has been colonized by humans. Alcatel (the French telecom equipment company) and Nokia (the Finnish telecom equipment company) are trying to decide whether to invest in the first cellular telecommunications system on the moon. The market is big enough to support just one firm profitably. Both companies must make huge expenditures in order to construct a cellular network on the moon. The payoffs that each firm gets when it enters or does not enter the moon market are as follows:
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Ignoring mixed strategies, find all of the Nash equilibria in this game.
Nokia Enter -1,000, 1,000 0, 500 Do Not Enter 500, 0 0,0 Alcatel Enter Do Not Enter
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