You are the manager of the ABC novelty store,and your only competitor is the XYZ novelty store.You are both trying to decide on which magic tricks and party favors to carry in stock.The product mixes available to both of you are low,medium,and high in variety.Your expected earnings in this market are shown in the following table:
$$\begin{array}{c}
\text { Firm XYZ }\
\text { Firm ABC }

\begin{array} { | l | l | l | l | }
\hline \text { Strategy } & \text { Low } & \text { Medium } & \text { High } \
\hline \text { Law } & 100,100 & 150,200 & 200,300 \
\hline \text { Medium } & 200,75 & 125,150 & 225,195 \
\hline \text { High } & 300,200 & 100,225 & 150,250 \
\hline
\end{array}
\end{array}$$ a.Find the Nash equilibrium (or equilibria)for a simultaneous-move,one-shot play of this game.
b.What outcome would you expect in this one-shot game?
Why?

Question

You are the manager of the ABC novelty store,and your only competitor is the XYZ novelty store.You are both trying to decide on which magic tricks and party favors to carry in stock.The product mixes available to both of you are low,medium,and high in variety.Your expected earnings in this market are shown in the following table:
 $$\begin{array}{c}
\text { Firm XYZ }\
\text { Firm ABC }

\begin{array} { | l | l | l | l | } 
\hline \text { Strategy } & \text { Low } & \text { Medium } & \text { High } \
\hline \text { Law } & 100,100 & 150,200 & 200,300 \
\hline \text { Medium } & 200,75 & 125,150 & 225,195 \
\hline \text { High } & 300,200 & 100,225 & 150,250 \
\hline
\end{array}
\end{array}$$ a.Find the Nash equilibrium (or equilibria)for a simultaneous-move,one-shot play of this game.
b.What outcome would you expect in this one-shot game?
 Why?

Quizplus · Accepted Answer

The Answer of You are the manager of the ABC novelty store,and your only competitor is the XYZ novelty store.You are both trying to decide on which magic tricks and party favors to carry in stock.The product mixes available to both of you are low,medium,and high in variety.Your expected earnings in this market are shown in the following table:
 $$\begin{array}{c}
\text { Firm XYZ }\
\text { Firm ABC }

\begin{array} { | l | l | l | l | } 
\hline \text { Strategy } & \text { Low } & \text { Medium } & \text { High } \
\hline \text { Law } & 100,100 & 150,200 & 200,300 \
\hline \text { Medium } & 200,75 & 125,150 & 225,195 \
\hline \text { High } & 300,200 & 100,225 & 150,250 \
\hline
\end{array}
\end{array}$$ a.Find the Nash equilibrium (or equilibria)for a simultaneous-move,one-shot play of this game.
b.What outcome would you expect in this one-shot game?
 Why?

You Are the Manager of the ABC Novelty Store,and Your