plz solve it within 30-40 mins I'll give you multiple upvote Partnership GameLee (Player 1), and Julie (Player 2), are business partners. Each of them has to determine the amountof effort he or she will put into the business, which is denoted by ei, i = 1,2, and may be anynonnegative real number: The cost of effort ei for Player i is cei, where c > 0 is equal for bothplayers. The success of the business depends on the amount of effort put in by the players. Thebusiness's profit is denoted by n(e1,e2) = elae2a, where a E (0, 1) is a fixed constants known by Leeand Julie, and the profit is shared equally between the two partners. Each player's utility is given bythe difference between the share of the profit received by that player and the cost of the effort heor she put into the business. Answer the following questions:(a) Describe this situation as a strategic-form game. Note that the set of strategies of each player isthe continuum.(b) Find all the Nash equilibria of the game.(C) Find the efficient solution of the game and compare it to the Nash equilibrium.

The level of effort is given as The cost of putting the effort is given as The profit for both the…

Partnership Game Lee (Player 1), and Julie (Player 2), are business partners. Each of them has to determine the amount of effort he or she will put into the business, which is denoted by ei, i = 1,2, and may be any nonnegative real number: The cost of effort ei for Player i is cei, where c> 0 is equal for both players. The success of the business depends on the amount of effort put in by the players. The business's profit is denoted by (e1,e2) = elae2a, where a € (0, 1) is a fixed constants known by Lee and Julie, and the profit is shared equally between the two partners. Each player's utility is given by the difference between the share of the profit received by that player and the cost of the effort he or she put into the business. Answer the following questions: (a) Describe this situation as a strategic-form game. Note that the set of strategies of each player is the continuum. (b) Find all the Nash equilibria of the game. (c) Find the efficient solution of the game and compare it to the Nash equilibrium.

Partnership Game Lee (Player 1), and Julie (Player 2), are business partners. Each of them has to determine the amount of effort he or she will put into the business, which is denoted by ei, i = 1,2, and may be any nonnegative real number: The cost of effort ei for Player i is cei, where c> 0 is equal for both players. The success of the business depends on the amount of effort put in by the players. The business's profit is denoted by (e1,e2) = elae2a, where a € (0, 1) is a fixed constants known by Lee and Julie, and the profit is shared equally between the two partners. Each player's utility is given by the difference between the share of the profit received by that player and the cost of the effort he or she put into the business. Answer the following questions: (a) Describe this situation as a strategic-form game. Note that the set of strategies of each player is the continuum. (b) Find all the Nash equilibria of the game. (c) Find the efficient solution of the game and compare it to the Nash equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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