Question

What is the nash equilibrium for this​ game?

a. bp and the​ mini-mart will both not advertise.
b. bp will advertise and the​ mini-mart will not advertise.
c. bp and the​ mini-mart will both advertise.
d. the game has no nash equilibrium.
e. bp will not advertise and the​ mini-mart will advertise?

Answer 1

The nash equilibrium would be A. bp and the mini-mart will both not advertise.
The nash equilibrium happens when all of the competitors choose the decision that give the optimal outcome for both of them.
If Bp and mini-mart both choose not to advertise they both will have a similar profit.