-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,how many Nash equilibria are there?
A)0
B)1
C)2
D)It cannot be determined.

Question

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,how many Nash equilibria are there?
A)0 
B)1 
C)2 
D)It cannot be determined.

Quizplus · Accepted Answer

The payoff matrix is a 2x2 matrix with two Nash equilibria: (A,B) and (B,A).

-The Above Figure Shows the Payoff to Two Airlines,A and B,of