Arbordale Hospitality Industries (AHI) operates the only two hotels in the city of Arbordale. The Inn at Arbordale is a three-star hotel offering continental breakfast and a gym. The Inn charges $150 per night with constant marginal cost of renting each room of $30 per night (from cleaning and laundry.) Arbor Motel is a one-star motel offering a clean room but no frills. Arbor Motel charges $60 per night with constant marginal cost of renting each room of $20 per night (from cleaning and laundry.) Both hotels are operated as independent profit centers within AHI. Each hotel has its own management and makes its own decisions about operations and marketing. For both hotels, the annual bonuses earned by management depend only on the profits earned by that hotel, not on the overall profit of AHI. This means that each hotel's management makes decisions that maximize the profit of only its own hotel. The Inn Manager, Ms. Rocky, instead on Instagram advertising to attract her upper-middle class clientele. Ms. Rocky is currently weighing whether to do a large or small Instagram campaign next May. She estimates that her May average nightly occupancy will be 42 rooms if she does a small campaign, but that this number will be 55 if she instead does a large campaign. While this bump in occupancy is attractive to Ms. Rocky, Instagram advertising is expensive. The cost of a small campaign is $20,000, but the cost of a large campaign is $50,000. The Arbor Motel Manager, Mr. Timpanago, relies instead on billboard advertising to draw weary road warriors off the highway to his hotel. Mr. Timpanago is currently weighing whether to do a large or small billboard campaign this May. He estimates that his May average nightly occupancy will be 60 rooms if he does a small campaign, but that this number will be 85 if he instead does a large campaign. While this bump in occupancy is attractive to Mr. Timpanago, billboard advertising is expensive. The cost of a small campaign is $10,000, but the cost of a large campaign is $40,000. Interestingly, Arbor Motel billboards are occasionally noticed by well-to-do auto travelers, who then stop in Arbordale but choose to stay at the Inn. Because of this effect, if Mr. Timpanago runs a large billboard campaign, then the May average nightly occupancy at the Inn is higher by 10% (compared to what it otherwise would be). Similarly, Instagram ads for the Inn at Arbordale are occasionally noticed by bargain-conscious travelers, who then visit the town but choose to stay at Arbor Motel. Because of this effect, if Ms. Rocky runs a large Instagram campaign, then the May average nightly occupancy at Arbor Motel is higher by 15% (compared to what it otherwise would be). s) Identify any and all Nash Equilibria of this game. s) Is the Nash Equilibrium the best outcome in terms of maximizing overall profit of AHI Arbordale Hospitality Industries (AHI) operates the only two hotels in the city of Arbordale. The Inn at Arbordale is a three-star hotel offering continental breakfast and a gym. The Inn charges $150 per night with constant marginal cost of renting each room of $30 per night (from cleaning and laundry.) Arbor Motel is a one-star motel offering a clean room but no frills. Arbor Motel charges $60 per night with constant marginal cost of renting each room of $20 per night (from cleaning and laundry.) Both hotels are operated as independent profit centers within AHI. Each hotel has its own management and makes its own decisions about operations and marketing. For both hotels, the annual bonuses earned by management depend only on the profits earned by that hotel, not on the overall profit of AHI. This means that each hotel's management makes decisions that maximize the profit of only its own hotel. The Inn Manager, Ms. Rocky, instead on Instagram advertising to attract her upper-middle class clientele. Ms. Rocky is currently weighing whether to do a large or small Instagram campaign next May. She estimates that her May average nightly occupancy will be 42 rooms if she does a small campaign, but that this number will be 55 if she instead does a large campaign. While this bump in occupancy is attractive to Ms. Rocky, Instagram advertising is expensive. The cost of a small campaign is $20,000, but the cost of a large campaign is $50,000. The Arbor Motel Manager, Mr. Timpanago, relies instead on billboard advertising to draw weary road warriors off the highway to his hotel. Mr. Timpanago is currently weighing whether to do a large or small billboard campaign this May. He estimates that his May average nightly occupancy will be 60 rooms if he does a small campaign, but that this number will be 85 if he instead does a large campaign. While this bump in occupancy is attractive to Mr. Timpanago, billboard advertising is expensive. The cost of a small campaign is $10,000, but the cost of a large campaign is $40,000. Interestingly, Arbor Motel billboards are occasionally noticed by well-to-do auto travelers, who then stop in Arbordale but choose to stay at the Inn. Because of this effect, if Mr. Timpanago runs a large billboard campaign, then the May average nightly occupancy at the Inn is higher by 10% (compared to what it otherwise would be). Similarly, Instagram ads for the Inn at Arbordale are occasionally noticed by bargain-conscious travelers, who then visit the town but choose to stay at Arbor Motel. Because of this effect, if Ms. Rocky runs a large Instagram campaign, then the May average nightly occupancy at Arbor Motel is higher by 15% (compared to what it otherwise would be). s) Identify any and all Nash Equilibria of this game. s) Is the Nash Equilibrium the best outcome in terms of maximizing overall profit of AHI