Dominant strategy, Managerial Economics

In a one-shot game, if you advertise and your rival advertises, you will each earn RM5 million in profits.  If neither of you advertises, your rival will make RM4 million and you will make RM2 million.  If you advertise and your rival does not, you will make RM10 million and your rival will make RM3 million.  If your rival advertises and you do not, you will make RM1 million and your rival will make RM3 million.

a.    Write the above game in matrix table.     

b.    Do you have a dominant strategy?

c.    Does your rival have a dominant strategy?

Posted Date: 3/13/2013 7:49:26 AM | Location : United States







Related Discussions:- Dominant strategy, Assignment Help, Ask Question on Dominant strategy, Get Answer, Expert's Help, Dominant strategy Discussions

Write discussion on Dominant strategy
Your posts are moderated
Related Questions
Q. Explain Mark-up pricing? In addition to using above methods to conclude a firm's optimal level of output, a firm can also set price to maximise profit. Optimal markup rules

Managerial economics according to Mote and Paul "Managerial economics refers to those aspects of economics and its tools of analysis most relevant to the firm's decision-making

Q. Causes for diseconomies of scale? The most significant cause for diseconomies of scale is the diminishing returns to management. As the output grows beyond certain level the


how equilibrium output can be find in williamson model


Now, let's modify our model a bit. Let's add a fourth sector of spending so that Y = C + I + G + X n with X = X o and M = M = f (Y). Will this change, by itself, increase, decrea


How economics contributes to managerial functions However economics is variously defined, it's basically the study of logic andtechniques and tools, to make optimum use of ava

Takes the help of macroeconomics Managerial economics incorporates certain aspects of macroeconomic theory. These are important to comprehending the circumstances and environme