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,so shared 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.

Question

Quizplus · Accepted Answer

In the Nash equilibrium, each fisherman chooses to catch fewer fish in order to maximize their own profit. If they belonged to the same company and shared revenues and costs equally, they would have less of an incentive to hold back on their catches and would likely catch more fish overall. Therefore, the total number of fish caught would be less in the Nash equilibrium compared to if they worked in the same company.

Consider the Same Game Between the Fishermen in the Previous