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1.) There is a village with only one street, which is 400 meters long. Two shops (A

and B) are choosing a location on the street. Because the shops are identical, the c

ustomers will always go to the nearest one. Find (and explain the search for) all Na

sh equilibria?

2.) In a two player game, the strategy set of player 1 is x1  [1; 80]; the strategy set of player 2 is x2  [1; 70].
The payoff function of player 1 is: V1 = (x1)2 – x1 – x2

The payoff function of player 2 is: V2 = (x2)2 – x2 – x1

Find all Nash equilibria.?

求解20點...

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