Question
Two hundred travelers begin in city A and must travel to city B. There are three routes between A and B. Route I begins with
Two hundred travelers begin in city A and must travel to city B. There are three routes between A and B. Route I begins with a local street from A to C that takes x/10 hours per traveler on it where x is the number of travelers on the street, and then is followed by a highway from city C to city B that takes 2 hours of travel time per traveler regardless of the number of travelers on it. Route II begins with a highway from A to D that takes 4 hours per traveler regardless of the number of travelers on it, and then is followed by a local street from city D to city B that takes y/20 hours of travel time per traveler where y is the number of travelers on the street. Both routes I and II use only one-way roads. Route III is a highway directly linking city A and city B. It takes 12 hours of travel time per traveler regardless of the number of travelers on it. Let z be the number of travelers on Route III.
Question: Travelers simultaneously choose which route to use. Find Nash equilibrium values of x, y and z, and either provide calculations for your answer or explain your answer.
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