--%>

Divide total profit with profit maximization

Red Hat wants to raise the power of Linux to attract Windows all users. Therefore Microsoft is planning Windows Minus, a weaker version to compete along with Linux. All can sell low, medium or high powered versions of the new software, although each consequently should charge medium, higher, or lower prices for their software. When MS and RH could collude and divide their total profit in several fashions, joint profit maximization would arise with: (1) MS=high, RH = high. (2) MS=medium, RH=low. (3) MS=low, RH=high. (4) MS=high, RH=low. (5) MS=medium, RH=medium.

820_Nash Equilibrium1.png

How can I solve my Economics problem? Please suggest me the correct answer.

   Related Questions in Game Theory

  • Q : Infrastructure and decreasing cost

    Assume that government in a developing nation enables start-up some firms to manufacture at lower costs by building infrastructure (for example, power grids and transportation networks), as well as also facilitates learning-by-doing through building p

  • Q : Tit-for-Tat behavior The tit-for-tat

    The tit-for-tat behavior that frequently emerges in an infinitely repeated game may be summarized as do unto others like: (w) they most recently did unto you. (x) you would have them do unto you. (y) before they do unto you. (z) they have ever done un

  • Q : Zero Sum Games A “ winner-take-all ”

    A “winner-take-all” game of poker is an illustration of a: (w) positive-sum game. (x) negative-sum game. (y) zero-sum game. (z) non-zero sum game. Can anybody suggest me the proper explanation for given

  • Q : Game theory according to oligopolists

    The game theory approach supposes that oligopolists: (w) do not maximize profit. (x) act strategically. (y) are actually monopolists in disguise. (z) maximize revenue. I need a good answer on the t

  • Q : Problem about Second-Mover Strategy A

    A boxer who is a counterpuncher within place of an aggressor is subsequent a: (1) second-mover strategy. (2) grim strategy. (3) prisoner’s dilemma strategy. (4) rebound strategy. (5) copy-cat strategy. I need a good answer on

  • Q : Exemplify Zero-Sum Game Making a bet

    Making a bet within an office pool on this year's Super Bowl is an illustration of a: (w) positive-sum game. (x) negative-sum game. (y) zero-sum game. (z) communal sacrifice. I need a good answer on the topic of Economics <

  • Q : Competitive prices and efficiency and

    When all industries were purely competitive and externalities were not present and when the distribution of income was viewed as fair by consensus of the population, in that case the marginal value to society of an extra unit of a goo

  • Q : Example of a positive-sum game An

    An illustration of a positive-sum game could be: wa) trade between two countries according to the law of comparative advantage. (x) a robbery in which $1000 changes hands and no one is hurt. (y) a robbery in which $1000 changes hands and the mugger is

  • Q : Grim Strategy When Tia would respond by

    When Tia would respond by never again cooperating within a long sequence of repeated transaction when Carmen ever failed to cooperate, in that case Tia would be following: (1) Nash equilibrium. (2) tit-for-tat. (3) domino strategy. (4) grim strategy. (5) cut-throat co

  • Q : Policy of Grim Strategy A decisionmaker

    A decisionmaker [i.e., agent in a game] who never forgives other players who failed to cooperate within a previous encounter as well as who punishes them at each opportunity thereafter is pursuing a policy of: (i) motivated vengeance. (i) grim strateg