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Doruk and Genco are looking for each other. Simultaneously, Doruk sD and Genco sG spends its effort (sD, sG E [0, 1]. Encounter probabilities will
Doruk and Genco are looking for each other. Simultaneously, Doruk sD and Genco sG spends its effort (sD, sG E [0, 1]. Encounter probabilities will be given by sD X sG. its value is v for both. Cost of search effort, s3D for Doruk and Genco s3G for Genco (a) Represent this game in normal form. (c) Find and graph the best answers. (d) Find the Nash equilibrium of this game. How will the balance change when the value of v changes?
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