If you and your rival plan to be in business for 15 years, then the Nash equilibrium is for
A. you and your rival to not advertise in any year.
B. you and your rival to advertise every year.
C. neither firm to advertise in early years, but to advertise in later years.
D. each firm to advertise in early years, but not advertise in later years.
Answer:B
If you and your rival plan to be in business for 15 years, then the Nash equilibrium is for
A. you and your rival to not advertise in any year. B. you and your rival to advertise every year. C. neither firm to advertise in early years, but to advertise in later years. D. each firm to advertise in early years, but not advertise in later years.