"bequest" goes on forever) then a Nash equilibrium when the interest rate is zero is
A. for each firm to not advertise until the rival does, and then to advertise forever.
B. for your firm to never advertise.
C. for your firm to always advertise when your rival does.
D. for each firm to advertise until the rival does not advertise, and then not advertise forever.
Answer:A
"bequest" goes on forever) then a Nash equilibrium when the interest rate is zero is
A. for each firm to not advertise until the rival does, and then to advertise forever. B. for your firm to never advertise. C. for your firm to always advertise when your rival does. D. for each firm to advertise until the rival does not advertise, and then not advertise forever.