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pinkeel451Lv1
28 Sep 2019
Use the information in the following table, which summarizes the payoffs (i.e., profit) to two firms.
Firm 2
Average Quality High Quality
Firm 1 Average Quality 600, 600 400, 1100
High Quality 1100, 400 900, 900
a. What is each player's dominant strategy? Explain your reasoning.
b. Referring to the table above, is this an example of a prisoner's dilemma game? Why or why not?
c. Is there a Nash equilibrium? If so, what is it?
Use the information in the following table, which summarizes the payoffs (i.e., profit) to two firms.
Firm 2
Average Quality High Quality
Firm 1 Average Quality 600, 600 400, 1100
High Quality 1100, 400 900, 900
a. What is each player's dominant strategy? Explain your reasoning.
b. Referring to the table above, is this an example of a prisoner's dilemma game? Why or why not?
c. Is there a Nash equilibrium? If so, what is it?
Joshua StredderLv10
28 Sep 2019
