Question

Economics
Scenario: Effort Game. Consider a game in which, simultaneously, player 1 selects a real number x > 0
and player 2 selects any real number y > 0. The payoffs are given by:
ul(x,y) = 10x + 2xy - X2 u2(x,y) = 14y - 2xy - y2 .
6. Refer to Scenario: Effort Game. What are the unique pure strategy Nash equilibrium values of x and
y?
7. Refer to Scenario: Effort Game. What is the rationalizable set of this game?​

Answer 1

Answer:

Nash Equilibrium in Pure Strategies. ... The basic idea of a Nash equilibrium is that if each player chooses their part of the Nash equilbrium strategy, then no other player has a reason to deviate to another strategy..

Explanation:

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Answer 2

Answer:

12x + 25y = 300

Explanation: