Only two ice cream cone vendors, Jack and Jill, have been allowed to locate anyw
ID: 1200188 • Letter: O
Question
Only two ice cream cone vendors, Jack and Jill, have been allowed to locate anywhere on a half-mile strip of public beach for the summer. (Beach-goers are distributed evenly throughout the entire 1/2 mile of beach.) On the first day of summer Jack has initially located his ice cream stand at the far northern edge of the beach, and Jill has initially located her ice cream stand 1/2 mile away at the far opposite, southern edge of the beach. beth Jack and Jill are allowed to move their ice cream stands; it costs them nothing to move the ice cream stands. Are the initial locations of the ice cream stands consistent with a Nash equilibrium? Carefully explain why or why not, displaying convincing evidence of your understanding of the concept of Nash equilibrium, in four or more sentences.Explanation / Answer
on initial location is not constistent with nash equilibrium theory. because when one vendor moves closer towards other she can capture more market share than other as by moving closer she get her market share and in addition other's market share. so it is beneficial to move to mid points.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.