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sineoko [7]
2 years ago
13

Find the measure of QPPLEASE SHOW WORK​

Mathematics
1 answer:
KIM [24]2 years ago
8 0

the measurement of QP=8 CM

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Consider two competing firms in a declining industry that cannot support both firms profitably. Each firm has three possible cho
yaroslaw [1]

Answer:

a) attached below

b)  ( T,T )

c) The Pure-strategy Nash equilibria are : ( N,E ) and ( E,N )

d) The mixed-strategy Nash equilibrium for Firm 1 = ( 1/3 , 0, 2/3 )

while the mixed -strategy Nash equilibrium for Firm 2 = ( 1/3 , 0, 2/3 )

Step-by-step explanation:

A) write down the game in matrix form

let: E = exit at the industry immediately

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     N = exit at the end of the next quarter

matrix is attached below

B) weakly dominated strategies is ( T,T )

C) Find the pure-strategy Nash equilibria

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Assume that P is the probability of firm 1 exiting immediately ( E )

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hence the expected utility of firm 2 choosing E = 0 while the expected utility of choosing N = 4p - 2q .

The expected utilities of E and N to firm 2 =

0 = 4p - 2q = 4p - 2 ( 1-p) = 6p -2 which means : p = 1/3 , q = 2/3

4 0
2 years ago
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