Question
The town of Grayling has 10 thousand residents who produce fish from fish farms and lakes. Each person who works on a fish farm produces
The town of Grayling has 10 thousand residents who produce fish from fish farms and lakes. Each person who works on a fish farm produces 2 fish per day. Each person who fishes in a lake produces 10-X fish per day where X is the number of people (in thousands) who fish in the lakes. Each individual chooses the production method that gets them more fish. What is X in the Nash equilibrium of this game? (hint: it must be the case that individuals choosing the lake are choosing their best response, and individuals choosing the farms are choosing their best response. How many fish are they catching?) |
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