1. What combination of their choices is the Nash Equilibrium? In other words, what should Seller A and Seller B choose, respectively, to maximize their income? Advertising or no advertising?

Seller A's choice Seller B's choice

1. advertises advertises
2. advertises doesn't advertise
3. doesn't advertise advertises
4. doesn't advertise doesn't advertise

Answer rating: 100% (QA)

To determine the Nash Equilibrium we need to consider the choices of both Seller A and Seller B and ... View the full answer