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Filevskoye's profit equation for next year: f =( pf 60)MarketSize(MarketShare f +0.05) Ice-Fili's profit equation for next year: i =( pi 70)MarketSize(MarketShare i 0.05) 10.

Filevskoye's profit equation for next year:

f=(pf60)MarketSize(MarketSharef+0.05)

Ice-Fili's profit equation for next year:

i=(pi70)MarketSize(MarketSharei0.05)

10. After making any necessary adjustments to the profit equations you found, Ms. Pasternak created a matrix, showing payoffs to Ice-Fili and Filevskoye for each relevant pair of prices. Please use Ms. Pasternak's payoff matrix, on the spreadsheet posted to Blackboard, to find and report the Nash equilibrium pair of prices

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Filevskoye's potential prices on the vertical axis and payoffs (in 000 rubles) on the top of each cell r 86,515 86,541 86,561 86,575 86,581 86,581 86,575 86,561 86,541 86,515 r 85,993 86,016 86,033 86,043 86,046 86,043 86,033 86,016 85,993 85,963 209 r 84,426 84,439 84,446 84,446 84,439 84,426 84,406 84,379 84,346 84,306 r 83,904 83,914 83,917 83,914 83,904 83,887 83,864 83,834 83,797 83,754 206 205 r 82,337 82,337 82,330 82,317 82,297 82,270 82,237 82,197 82,150 82,097 81,815 81,811 81,801 81,785 81,761 81,731 81,695 81,651 81,601 81,545 81,293 81,286 81,273 81,253 81,226 81,193 81,153 81,106 81,053 80,993 226 227 228 229 230 231 232 233 234 235 236 Ice-Fili's potential prices on the horizontal axis and payoffs (in 000 rubles) on the bottom of each cell Note: A 15 unit difference in price leads to a 5% change in market share

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