Dr. Smith

-Libertyville has two optometrists, Dr. Smith and Dr. Jones. Each optometrist can choose to advertise his service or not. The incomes of each optometrist, in thousands of dollars, are given in the payoff matrix above. Which of the following statements correctly summarises the Nash equilibrium for the game?

Question

Dr. Smith
 
-Libertyville has two optometrists, Dr. Smith and Dr. Jones. Each optometrist can choose to advertise his service or not. The incomes of each optometrist, in thousands of dollars, are given in the payoff matrix above. Which of the following statements correctly summarises the Nash equilibrium for the game?

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. Without the specific payoff matrix, we can't identify the exact equilibrium, but option B suggests a scenario where both players choose a strategy (to advertise) that could be mutually optimal if advertising leads to a higher payoff despite the costs, assuming the other also advertises. This is a common outcome in competitive markets where visibility can significantly impact business.

Dr. Smith -Libertyville Has Two Optometrists, Dr. Smith and Dr. Jones. Each