Alfred and Barry each own a restaurant on a busy high street. At the moment they…

Alfred and Barry each own a restaurant on a busy high street. At the moment they each earn 100 units of profit. They each have the option of running an advertising campaign. If Alfred advertises and Barry does not then Alfred’s profits would be 110 and Barry’s 105. If Barry advertises and Alfred does not then Alfred’s profits would be 115 and Barry’s 101. If both advertise their profits would be 104. If both have to decide simultaneously whether to advertise, what are the Nash equilibrium outcomes? Alfred advertises, Barry advertises O Alfred advertises, Barry does not advertise Alfred does not advertise, Barry advertises O Alfred does not advertise, Barry does not advertise.