In this game, producers decide whether or not to
make an organic claim. If a producer chooses to
offer products with an organic claim, then he or she
must decide whether to use organic methods. If the
producer chooses to offer products with an organic
claim, then the consumer will buy if he or she is
better off doing so, or if c a 0.2 Similarly, the
consumer will buy the non-organic good if ~ a O.
Therefore, it will be a Nash equilibrium for the
producer to use organic methods if they are more
profitable; that is, if a – b 2 d – e and a – b 20.