Aang and Bolin are playing a simultaneous-move game where they seek to maximiz their utility functions. Assume that Aang chooses strategy a and Bolin chooses strategy band that their strategy spaces are continuous. Their utility functions are: • Aang's utility: UA = a(a - b-2) • Bolin's utility: UB = -b(b-a-8) What is the pure-strategy Nash equilibrium in this game? Write Aang's choice for a in blank #1 and Bolin's choice for bin blank #2. Blank # 1 Blank # 2

Aang and Bolin are playing a simultaneous-move game where they seek to maximiz their utility functions. Assume that Aang chooses strategy a and Bolin chooses strategy band that their strategy spaces are continuous. Their utility functions are: • Aang's utility: UA = a(a - b-2) • Bolin's utility: UB = -b(b-a-8) What is the pure-strategy Nash equilibrium in this game? Write Aang's choice for a in blank #1 and Bolin's choice for bin blank #2. Blank # 1 Blank # 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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