Table 16.6
Two firms share a common fishery. One strategy available to the firms is to fish sustainably. This maintains a healthy breeding population of fish, and keeps the price of fish relatively high. The other strategy is to overfish. This reduces the breeding population and fish prices tend to fall. The game is represented in the following table.

-Refer to Table 16-6. The Nash equilibrium for this game is for:

Question

Table 16.6
Two firms share a common fishery. One strategy available to the firms is to fish sustainably. This maintains a healthy breeding population of fish, and keeps the price of fish relatively high. The other strategy is to overfish. This reduces the breeding population and fish prices tend to fall. The game is represented in the following table.
 
-Refer to Table 16-6. The Nash equilibrium for this game is for:

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the strategy of the other player. In this scenario, if both firms choose to over-fish, neither firm can benefit by unilaterally changing their strategy, making it the Nash equilibrium.

Table 16.6 Two Firms Share a Common Fishery. One Strategy Available to Available