10/15/03
35
Another Example (Reconsidered)
50, 50
10, 90
Ð20, 40
p
= 3
90, 10
20, 20
Ð10, 50
p
= 2
40, Ð20
50, Ð10
0, 0
p
= 1
Alpha
p
= 3
p
= 2
p
= 1
Beta
Price
Competition
Not a Nash equilibrium
Example from McCainÕs
Game Theory: An Introductory Sketch
better for Alpha
better for Beta
So 50, 50 is not a Nash equilibrium
We can work our way through all the other possibilities
None are Nash eq. until we come to 0,0
(McCain)