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 99 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
Great answer, keep it coming :)

ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

(b) Badlands region of southeastern Alberta, Canada. (b) Badlands region of southeastern Alberta, Canada.
Tar sands from Alberta, Canada Tar sands from Alberta, Canada
Gislebertus, Last Judgment, tympanum and lintel, west portal, cathedral, Autun, France. Gislebertus, Last Judgment, tympanum and lintel, west portal, cathedral, Autun, France.
Canada's Major Fertilizer Producers and their Products Canada's Major Fertilizer Producers and their Products
High stress, by household type (age-standardized), age 18+, Canada, 1994-1995 High stress, by household type (age-standardized), age 18+, Canada, 1994-1995
5. Social contract theorists believe that the social contract is/was a historical fact. ... 5. Social contract theorists believe that the social contract is/was a historical fact. ...
Video: Central Nervous System Animation

For a complete list of videos, visit our video library