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Suppose there are two firms, East and Bay, deciding whether to concentrate on producing electric cars or gasoline-powered cars. The profits (in millions) from the
Suppose there are two firms, East and Bay, deciding whether to concentrate on producing electric cars or gasoline-powered cars. The profits (in millions) from the two options are given in the following table. The number on the left represents the profits of East and the number on the right represents the profits of Bay. What is the Nash equilibrium in this interaction between the two firms? Explain how you arrived at your answer. Aggies Electric Gas East Electric ($500 , $ ($400 , $600) Gas ($1000 , $200) ($300 , $300)
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