Suppose that the best-response pricing functions for firms A and B are PA = 0.22 + 0.5PB and PB = 0.10 + 0.2PA, respectively. The Nash equilibrium strategy profile for this static game with continuous strategies is:
A) {$0.30, $0.16}.
B) {$0.27, $0.15}.
C) {$0.22, $0.10}.
D) {$0.27, $0.16}.
E) None of the above are correct.
Correct Answer:
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