Business, 23.03.2021 05:20 nockturnal1993

Consider a remote town in which two restaurants, All-U-Can-Eat and GoodGrub Diner, operate in a duopoly. Both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 100 miles of town. Both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the cleaning. If neither restaurant cleans, each will earn $15,000; alternatively, if they both hire workers to clean, each will earn only $11,000. However, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make $20,000, and the other restaurant will make only $8,000. GoodGrub Diner All-U-Can-Eat Cleans Up Doesn't Clean Up Cleans Up , , Doesn't Clean Up , , Fill in the payoff matrix for this one-shot game. Find the Nash equilibrium of this one-shot game assuming there is no collusion. Be sure to identify any dominant strategy for either country. Find the Nash equilibrium of this one-shot game assuming there is effective collusion.

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Consider a remote town in which two restaurants, All-U-Can-Eat and GoodGrub Diner, operate in a duop...

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