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Synergies: Two division managers can invest time and effort in creating a better working relationship. Each invests el- 3 D, and if both invest more

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Synergies: Two division managers can invest time and effort in creating a better working relationship. Each invests el- 3 D, and if both invest more then both are better off, but it is costly for each manager to invest. In particular the payoff function for player 1' from effort levels (oi, of) is til-(5,199: (a | e''i 2 a. What is the best-response correspondence of each player? 13. In what way are the best-response correspondences different from those in the Cournot game? Why? c. Find the Nash equilibrium of this game and argue that it is unique

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