there are 4,000 people that commute into a city each day. There is a local road that takes 30 minutes regardless of traffic. There is also a highways that takes 5 minutes when there is no traffic but where each additional driver adds .01 minute. a) Find the Nash Equilibria b) How many drivers should use the local road to maximize the societal benefit?

there are 4,000 people that commute into a city each day. There is a local road that takes 30 minutes regardless of traffic. There is also a highways that takes 5 minutes when there is no traffic but where each additional driver adds .01 minute. a) Find the Nash Equilibria b) How many drivers should use the local road to maximize the societal benefit?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter14: Transaction Costs, Imperfect Information, And Behavioral Economics

Section: Chapter Questions

Problem 10QFR

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