There are three major network affiliate television stations in

Problem 2 
There are three major network affiliate television stations in Hicksville: RBC, CBC and MBC. All three 
stations have the option of airing the evening network-news program live at 6:00 pm or in a delayed 
broadcast at 7:00 pm. By regulation, they may not choose other times. Each station’s objective is to 
maximize its viewing audience, in order to maximize the station’s advertising revenue. The table below 
gives the percentage of Hicksville’s total population “captured” by each station as a function of the time 
at which each news program is shown. The numbers do not sum to 100 since not everyone always 
watches TV. 

Times Chosen Audience Capture 
6:00 pm 6:00 pm 6:00 pm 32 14 24 
6:00 pm 6:00 pm 7:00 pm 27 8 30 
6:00 pm 7:00 pm 6:00 pm 24 30 16 
6:00 pm 7:00 pm 7:00 pm 50 13 12 
7:00 pm 6:00 pm 6:00 pm 30 16 24 
7:00 pm 6:00 pm 7:00 pm 24 30 16 
7:00 pm 7:00 pm 6:00 pm 14 30 23 
7:00 pm 7:00 pm 7:00 pm 32 14 24 

1) Suppose that the choices of all three stations are made simultaneously. Find the Nash 
equilibrium(s). (Hint: Try to set this up so it looks more like a normal form game. To do this for 
three players, use two 2*2 matrices: let MBC choose the matrix, RBC the row and CBC the 

2) Suppose now that the game is played sequentially. MBC moves first. RBC moves second and 
CBC moves third. Each station can observe all previous moves before making her choice. Explain 
what will happen. 

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