a. As a base case, determine the Nash Equilibrium in a 1-shot simultaneous move game. (4 points)

b. Assuming collusion is not permissible, what type of alternative strategies can JCDecaux and Clear Channel use to improve their expected profits beyond those obtained if they play the strategies you identified in your previous answer? (4 points)

c. If Clear Channel offers a higher revenue sharing figure than expected in the New York bid, based on the Nash Equilibrium you computed above, how would you suggest that JCDecaux behave the next time they bid against Clear Channel? Should they offer the next municipal government a higher revenue sharing figure than predicted by the Nash Equilibrium? Why or why not? (4 points)

PLEASE ANSWER ALL 3