Dominant strategy equilibrium and nash equilibrium

Reference no: EM1369544

In the limit pricing payoff matrix, Coa can choose a given row of outcomes by offering a limit price(up) or monopoly price (down). Han can choose a given column of outcomes by choosing to offer a limit price (left) or monopoly price (right). Neither firm can choose which cell of the payoff matrix to obtain; the payoff for each firm depends upon the pricing strategioes of both firms.

Han

Coa Pricing Strategy Limit Price Monopoly Price
Limit Price $1.5 billion,$3billion $2.5 billion,$2 billion
Monopoly Price $1 billion,$4 billion $1.75 billion,$3 billion

Is there a dominant strategy equilibrium in this problem? If so, what is it?

Is there a Nash equilibrium in this problem? If so, what is it?

Reference no: EM1369544

Questions Cloud

What output will firm choose : What output will firm choose. What will be monopolistic competitor's average fixed cost at output it chooses.

Program display error message if test score is invalid : The program must display suiatble letter grade. The program must display an error message if the test score is 100.

Determine critical path : Determine Critical path - Determine critical path and also need help in finding how to reduce the project time by a number of weeks.

Compute whether or not jet blue was effective : Compute whether or not Jet Blue was effective with executing it strategy of growth.

Dominant strategy equilibrium and nash equilibrium : In the limit pricing payoff matrix, Coa can choose a given row of outcomes by offering a limit price or monopoly price. Choose a given column of outcomes by choosing to offer a limit price or monopoly price.

What cost of producing a barrel of oil in saudi arabia : What is opportunity cost of producing a barrel of oil in Saudi Arabia. In United States. Which country has comparative advantage in producing oil.

Explain to what extent do you believe that market share : Explain To what extent do you believe that this Shakti initiative will drive sustainable market share and revenue growth within key developing markets

How disparate are returns if you win : How disparate are returns if you win. As disparity increases => marginal benefit increases. Which of these two explanations is correct.

Store normal for each face in array using technique : Use technique of the Astle text to store normal for each face in faceData array enable lighting and add point light source if the light is positioned at the origin

User Account

All Pages