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Use the Table, with Data for Peter and Olga, to Answer

Question 61

Multiple Choice

Use the table, with data for Peter and Olga, to answer the question.
Peter and Olga live near a lake with open fishing, and both have fishing boats there. They are the only two sellers in their local fish market. What is likely to be the result in a Nash equilibrium?
 Table: Peter and Olga Fish in the Lake  Olga fishes every day.  Olga fishes two times  each week.  Peter fishes every day.  Both Olga and Peter  have smaller and  smaller catches over  time.  Peter catches and sells  more fish than Olga  Peter fishes two times  each week.  Olga catches and sells  more fish than Peter.  Both Olga and Peter have  large catches each fishing  trip. \begin{array}{l}\text { Table: Peter and Olga Fish in the Lake }\\\begin{array} { | l | l | l | } \hline & \text { Olga fishes every day. } & { \begin{array} { c } \text { Olga fishes two times } \\\text { each week. }\end{array} } \\\hline \text { Peter fishes every day. } & \begin{array} { l } \text { Both Olga and Peter } \\\text { have smaller and } \\\text { smaller catches over } \\\text { time. }\end{array} & \begin{array} { l } \text { Peter catches and sells } \\\text { more fish than Olga }\end{array} \\\hline \begin{array} { l } \text { Peter fishes two times } \\\text { each week. }\end{array} & \begin{array} { l } \text { Olga catches and sells } \\\text { more fish than Peter. }\end{array} & \begin{array} { l } \text { Both Olga and Peter have } \\\text { large catches each fishing } \\\text { trip. }\end{array} \\\hline\end{array}\end{array}


A) Both Olga and Peter have smaller and smaller catches over time.
B) Peter catches and sells more fish than Olga.
C) Olga catches and sells more fish than Peter.
D) Both Olga and Peter continue to have large catches on each fishing trip.

Correct Answer:

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