This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose two firms, Allstom from France, and Bombardier from Canada, are bidding on a contract to ... (Read 84 times)

sc1250

  • Full Member
  • ***
  • Posts: 152
on: Oct 12, 2022

Suppose two firms, Allstom from France, and Bombardier from Canada, are bidding on a contract to replace train cars for the subway system in Mexico City. If they bid the same amount, they share the contract-otherwise, the low bid wins. The figure below shows the payoff matrix for this contest.



FIGURE 11-6

Refer to Figure 11-6. What is the Nash equilibrium in this bidding contest between Allstom and Bombardier?


◦ The two firms will co-operate and maximize their joint profits at $10 million each.
◦ Each firm will bid the high price, expecting a larger total profit.
◦ Each firm will bid the low price, and each will earn a profit of $2.5 million.
◦ There is no Nash equilibrium in this bidding contest, because each firm can expect to earn at least $5 million.
◦ both A and C are Nash equilibria.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by sc1250 on Oct 12, 2022

Mynameisrandom

  • Full Member
  • ***
  • Posts: 178
Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


sc1250

  • Member
  • Posts: 152
Reply 2 on: Oct 12, 2022
Excellent

Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Canada Goose Canada Goose
Pont du Gard, near Nîmes, France. Pont du Gard, near Nîmes, France.
Canada's Major Fertilizer Producers and their Products Canada's Major Fertilizer Producers and their Products
In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: Sister chromatids of a metaphase chromosome animation

For a complete list of videos, visit our video library