Table 17-34
Suppose that two oil companies - BP and Exxon - own adjacent natural gas fields. The profits that each firm earns depends on both the number of wells it drills and the number of wells drilled by the other firm. The table below lists each firm's individual profits:
Exxon
Drill one well Drill two wells
-Refer to Table 17-34. Is there a Nash equilibrium? If so, describe it.

Question

Table 17-34
Suppose that two oil companies - BP and Exxon - own adjacent natural gas fields. The profits that each firm earns depends on both the number of wells it drills and the number of wells drilled by the other firm. The table below lists each firm's individual profits:
Exxon
Drill one well Drill two wells 
-Refer to Table 17-34. Is there a Nash equilibrium? If so, describe it.

Quizplus · Accepted Answer

The Answer of Table 17-34
Suppose that two oil companies - BP and Exxon - own adjacent natural gas fields. The profits that each firm earns depends on both the number of wells it drills and the number of wells drilled by the other firm. The table below lists each firm's individual profits:
Exxon
Drill one well Drill two wells 
-Refer to Table 17-34. Is there a Nash equilibrium? If so, describe it.

Table 17-34 Suppose That Two Oil Companies - BP and Exxon -