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In: Economics

Tom, Dicck, and Harry are all in the bottled-water business. If one or two of them...

Tom, Dicck, and Harry are all in the bottled-water business. If one or two of them expand their production, they can take business away from those who do not, but if all expand, they will be back to a break-even situation. Here are the payoffs.

Harry

Expand

No

Dicck

Dicck

Expand

No

Expand

No

Tom

Expand

0,0,0

1,-2,1

1,1,-2

2,-1,-1

No

-2,1,1

-1,-1,2

-1,2,-1

0,0,0

Has this game any Nash equilibria? If so, list them and explain.

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Rahul Sunny answered 2 years ago
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