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Alfred and Barry each own a restaurant on a busy high street. At the moment they each earn 100 of profit. They each have the
Alfred and Barry each own a restaurant on a busy high street. At the moment they each earn 100 of profit. They each have the option of running an advertisingcampaign. If Alfred advertises and Barry does not then Alfred's profits would be110 and Barry's105. If Barry advertises and Alfred does not then Alfred's profits would be 115 and Barry's 101. If both advertise their profits would be 104. If bothhave to decide simultaneously whether to advertise, what are the Nash equilibrium outcomes?
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