Nash Equilibrium: Math or chip research
Not what you're looking for?
Consider two firms, A and B, that produce super computers. Each can produce the next generation super computer
for math (M) or for chip research (C). However, only one can successfully produce for both markets
simultaneously. Also, if one produces one type, the other might not be able to successfully produce the same type,
because of the limited market. The following payoff matrix illustrates the problem.
Does a Nash equilibrium exist ? (Answer yes or No). If a nash equilibrium exists, give the payoffs.
**(Firm B should be across the top of the rectangle like this, with the numbers inside)
Firm B
M C
Firm A: M 2,1 2,2
C 1,1 3,2
Purchase this Solution
Solution Summary
Nash equilibrium evaluation is performed.
Solution Preview
Firm B has a dominant strategy - Strategy C. Irrespective of whatever strategy Firm A takes, Firm B would always take strategy C.
Firm A does not have a dominant ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.