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) Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water. Assume zero cost to produce bottled water.
) Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water. Assume zero cost to produce bottled water. The market demand is given by the following schedule.
Price | Quantity |
0 | 30 |
10 | 25 |
16 | 20 |
26 | 15 |
34 | 10 |
35 | 5 |
36 | 0 |
- Construct a payoff table and find a Nash equilibrium from the table.
- Find a Nash equilibrium in the payoff table constructed in (1).
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