What is the Nash Equilibrium of the game?

T are considering whether or not to advertise during the Super Bowl. If neither comp Show more Verizon and AT&T are considering whether or not to advertise during the Super Bowl. If neither company advertises the two companies split the market and earn $55 million each. If they both advertise they again split the market but profits are lower by $15 million since each company must bear the cost of advertising. Yet if one company advertises while the other does not the one that advertises attracts more customers. In this case the company that advertises earns $70 million while the company that does not advertise earns only $25 million. What is the Nash Equilibrium of the game? AT&T Do not advertise Advertise Verizon Do not advertise $55 million $55 million $70 million $25 million Advertise $25 million $70 million $40 million $40 million Show less

“Get 15% discount on your first 3 orders with us” Use the following coupon FIRST15

Posted in Uncategorized