Consider the same game between the fishermen in the previous question.How does the total number of fish caught in the Nash equilibrium compare to the number they would catch if they belonged to same company,sharing revenues and costs equally?
A) No change.
B) They would catch more if they worked in the same company.
C) They would catch less if they worked in the same company.
D) Not enough information to answer.

Question

Quizplus · Accepted Answer

In the Nash equilibrium, each fisherman is incentivized to catch as many fish as possible, which leads to overfishing and a lower total number of fish caught compared to if they were working in the same company and sharing revenues and costs equally. When working together in the same company, they would have more of an incentive to conserve the fish population and work efficiently to maximize profits, leading to a higher total number of fish caught in the long run.

Consider the Same Game Between the Fishermen in the Previous