Return to the version of the game between the fishermen in which they fish independently. If the marginal cost for just fisherman A went up,what would be the likely effect on the Nash equilibrium?
A)A would catch more fish,and B would catch fewer.
B)A would catch fewer fish,and B would catch more.
C)A would catch more fish,but B's catch would not change.
D)A would catch fewer fish,but B's catch would not change.

Question

Quizplus · Accepted Answer

When the marginal cost for fisherman A increases, it becomes more expensive for A to catch each additional fish, leading A to reduce their fishing effort. As a result, there will be more fish available for fisherman B, who can catch more without changing their own costs. This adjustment leads to a new Nash equilibrium where A catches fewer fish and B catches more.

Return to the Version of the Game Between the Fishermen