Question

There are 100 residents in city Lonis who work in another city called Pardon. The residents can can take one of the two routes, A or B, to commute to Pardon. Both routes are free, however route A is wider, whereas route B is narrower. A commuters net payoff from traveling on route A is y−2k if a total of k drivers take route A. Similarly, the payoff of a commuter from traveling on route B is y−3k if a total of k drivers take route B.

In a Nash equilibrium, how many drivers take Route A?

Please write on a paper

Answer 1

Please refer to the following image for the solution to your question. The answer is 60 drivers along route A.