So at the Nash Equilibrium quantities I'm going to have q1* is equal to a - c over 2bq* and q2* is equal to a - c 2bq1* over 2 and now we're going to solve this out by setting q1 = q2 since I know the game is symmetric and they were on the 45º line. So putting q...
I could do the same thing for Player 2 to find Player 2's best response for every possible choice of Player 1. If I plug q2 = 0 into here, this term disappears and I just get a - c over 2b. What's that telling me? Let me put the 45º line in here. What's that ...