1. England vs. Ashley

a. According to Oxford's Big Data Institute, Glasgow Montana is the most remote town in the United States. Perhaps because of its remote location, only two furniture manufacturers serve the local market?England and Ashley.

You are hired as a consultant, working for England, to figure out what price England should charge in Glasgow Montana. An analyst develops a payoff matrix showing the profitability for every pair of reasonable prices England and Ashley might charge per equivalent unit. The payoff matrix is reproduced below.

Based on the matrix the analyst developed, what are the Nash Equilibria prices for Ashley and England in Glasgow Montana? Please report your answer in the following format: {Ashley price, England price}, {Ashley price, England price}.

Discus a legal and ethical way England might be able to achieve prices that are higher than the Nash Equilibria prices.

Payoff matrix Ashley price (payoffs on the top of each cell) $ 1,700 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 1,800 2,125 2,400 2,625 2,800 2,925 3,000 3,025 3,000 2,925 2,800 $ 1,650 1,425 1,900 2,375 2,850 3,325 3,800 4,275 4,750 5,225 5,700 6,175 1,700 2,000 2,250 2,450 2,600 2,700 2,750 2,750 2,700 2,600 2,450 $ 1,600 1,800 2,250 2,700 3,150 3,600 4,050 4,500 4,950 5,400 5,850 6,300 1,600 1,875 2,100 2,275 2,400 2,475 2,500 2,475 2,400 2,275 2,100 $ 1,550 2,125 2,550 2,975 3,400 3,825 4,250 4,675 5,100 5,525 5,950 6,375 1,500 1,750 1,950 2,100 2,200 2,250 2,250 2,200 2,100 1,950 1,750 $ 1,500 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 6,000 6,400 1,400 1,625 1,800 1,925 2,000 2,025 2,000 1,925 1,800 1,625 1,400 $ 1,450 2,625 3,000 3,375 3,750 4,125 4,500 4,875 5,250 5,625 6,000 6,375 1,300 1,500 1,650 1,750 1,800 1,800 1,750 1,650 1,500 1,300 1,050 $ 1,400 2,800 3,150 3,500 3,850 4,200 4,550 4,900 5,250 5,600 5,950 6,300 1,200 1,375 1,500 1,575 1,600 1,575 1,500 1,375 1,200 975 700 S 1,350 2,925 3,250 3,575 3,900 4,225 4,550 4,875 5,200 5,525 5,850 6,175 1,100 1,250 1,350 1,400 1,400 1,350 1,250 1,100 900 650 350 S 1,300 3,000 3,300 3,600 3,900 4,200 4,500 4,800 5,100 5,400 5,700 6,000 1,000 1,125 1,200 1,225 1,200 1,125 1,000 825 600 325 0 S 1,250 3,025 3,300 3,575 3,850 4,125 4,400 4,675 4,950 5,225 5,500 5,775 900 1,000 1,050 1,050 1,000 900 750 550 300 0 0 $ 1,200 3,000 3,250 3,500 3,750 4,000 4,250 4,500 4,750 5,000 5,250 5,500 800 875 900 875 800 675 500 275 0 0 0 $ 1,200 $ 1,250 $ 1,300 $ 1,350 $ 1,400 $ 1,450 $ 1,500 $ 1,550 $ 1,600 $ 1,650 $ 1,700 England price (payoffs on the bottom of each cell)