1.101.20- 226- 215- 106- 89- 56- 37- 44- 25- 52- 32- 70-51- 93-76- 118- 102What are the firms' strategies?The firms pickO A. quantities.OB. profits.O C. advertising.O D. competition.OE. prices.Why is this situation an example of the prisoners' dilemma game?This game is a type of prisoners' dilemma becauseO A. the firms are rivals.O B. competing maximizes joint firm profits.O C. the game results in cooperation.Click to select your answer.P&G1.101.201.301.401.501.601.701.801.30- 204- 73- 19-6- 15- 34- 59-871.40194- 5824123- 18-44-721.50- 183- 43152920-1- 28-571.60- 174- 2831463614-13-441.70- 165- 15476252301-301.80- 155-26278684415- 17

Businesses do not operate in isolation. They are a part of a larger context that includes the…

1.10 1.20 - 226 -215 - 106 - 89 -56 -37 -44 -25 - 52 -32 -70 -51 - 93 -76 - 118 - 102 A. quantities. B. profits. C. advertising. D. competition. OE. prices. Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because A. the firms are rivals. B. competing maximizes joint firm profits. OC. the game results in cooperation. Click to select your answer P&G 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 What are the firms' strategies? The firms pick 1.30 - 204 -73 - 19 -6 -15 - 34 - 59 -87 1.40 - 194 - 58 2 12 3 - 18 -44 -72 1.50 - 183 -43 ២ ខ ន រី - 28 -57 1.60 -174 - 28 31 46 36 14 -13 -44 1.70 - 165 -15 47 62 52 30 1 -30 1.80 - 155 -2 62 78 68 44 15 -17

1.10 1.20 - 226 -215 - 106 - 89 -56 -37 -44 -25 - 52 -32 -70 -51 - 93 -76 - 118 - 102 A. quantities. B. profits. C. advertising. D. competition. OE. prices. Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because A. the firms are rivals. B. competing maximizes joint firm profits. OC. the game results in cooperation. Click to select your answer P&G 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 What are the firms' strategies? The firms pick 1.30 - 204 -73 - 19 -6 -15 - 34 - 59 -87 1.40 - 194 - 58 2 12 3 - 18 -44 -72 1.50 - 183 -43 ២ ខ ន រី - 28 -57 1.60 -174 - 28 31 46 36 14 -13 -44 1.70 - 165 -15 47 62 52 30 1 -30 1.80 - 155 -2 62 78 68 44 15 -17

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 4SCQ: Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly...

See similar textbooks

Similar questions

Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Film A) is large and the other film (Film B) is small, as the prisoners dilemma box in Table 10.4 shows. Assuming that both films know the payoffs, what is the likely outcome in this case?
What is an example of a firm that operates in an oligopoly? The firms that produce operate in oligopoly. O A. strawberries O B. electric power distribution OC. breakfast cereal O D. running shoes O E. pizza
Define the prisoner’s dilemma game. The prisoner’s dilemma game is a: two-person noncooperative sequential game that demonstrates the difficulty of cooperative behavior in certain circumstances. two-person cooperative simultaneous game that demonstrates the difficulty of cooperative behavior in certain circumstances. two-person noncooperative simultaneous game that demonstrates the difficulty of cooperative behavior in certain circumstances. two-person cooperative sequential game that demonstrates the difficulty of cooperative behavior in certain circumstances. a. What assumptions lead to the dilemma? If the prisoners confess, each would get a light sentence. But each prisoner is interrogated separately and is offered the chance to go free if he or she confesses to the crime and agrees to serve as a witness against the other prisoner. This creates the incentive for both prisoners to not confess. If the prisoners do not confess, each would get a…
P&G 1.10 1.20 1.10 - 226 - 215 1.20 - 106 - 89 1.30 - 56 - 37 1.40 - 44 - 25 1.50 - 52 -32 1.60 - 70 -51 - 93 -76 1.70 1,80 - 118 - 102 Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because O A. the firms are rivals. OB. competing maximizes joint firm profits. O C. the game results in cooperation. Click to select your answer. 1.30 - 204 -73 - 19 -6 - 15 - 34 - 59 -87 1.40 -194 - 58 2 S 12 5 3 - 18 -44 -72 1.50 - 183 - 43 15 29 20 -1 - 28 -57 1.60 - 174 - 28 31 46 36 14 -13 -44 1.70 - 165 - 15 47 62 52 30 1 -30 130 15228841517 1.80 - -2 62 68 44
1. Find all subgame perfect nash equilibrium 2. Find a nash equilibrium that is not SPNE, and explain why it is not an SPNE.
Consider the following price game: Firm 1 Firm 2 High Low High 20, 20 12, 24 Low 24, 12 14, 14 Remark: In simultaneous move games (games with rows and columns) theconvention is to write the row player’s payoff first and the column player’spayoff second. (a) What is the Nash equilibrium of this game? Recall that for each playeryou should find the best response to each of the opponents’ strategies andunderline the associated payoff. Then look for a cell where both strategiesare best responses to each other. This is a Nash equilibrium. (b) Does either firm have a dominate strategy (a strategy that is always abest response)?
10 logging firms use a forest to collect timber. Each firm i must choose how many trees to cut, gj The benefit of cutting a tree is 1000 -2G per tree, where G is the total quantity of trees cut in the forest. The marginal cost of cutting a tree is 10G. Firms do not face any fixed costs. In a Nash Equilibrium, O Each firm cuts 125 trees O Each firm cuts 125/10 trees O Each firm cuts 125/4 trees O Each firm cuts 5 trees
fnan421 Word Gözden Geçir Görünüm Varam V Ne yapmak isted ginzi soyieyin 2) Two firms, X and Y, are planning to market their new products. Each firm can develop TV, Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP PHONE FIRM X TV 30, 30 50, 35 20, 50 LAPTOP 40,70 20, 20 50,80 PHONE 50,20 80,50 10,10 A) Find the Nash equilibria for this game, assuming that both firms make their decisions at the same time. (explain the decision step by step)i B) If each firm is risk averse and uses a maximin strategy, what will be the resulting equilibrium? (explain the decision step by step);
28 A payoff matrix shows the payoffs (i.e. bribes) required to government officials for firms undertaking specific actions. A details the actions each firm takes. shows the payoffs to each firm for each possible outcome. is optional in game theory. 29 A player's best response is the strategy that maximizes his payoff given what he thinks the other player will do. a dominant strategy. A В impossible to find when there isn't a Nash equilibrium. a way to avoid the prisoners' dilemma. D 30 Strategic advertising in the cola market significantly expands the size of the market. brings in few new customers and primarily shifts market share among A В rivals. shifts market demand to the right, increasing quantity sold and decreasing prices. has no impact on the market. C D B.
What is the Nash Equilibrium in a game?A. A situation where all players cooperate for maximum gainB. A situation where no player can improve their outcome by changing their strategy unilaterallyC. A situation where players always choose the same strategyD. A situation where players randomly select strategies
5. To advertise or not to advertise Suppose that Fizzo and Pop Hop are the only two firms that sell orange soda. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: Рop Hop Advertise Doesn't Advertise Advertise 10, 10 18, 2 Fizzo Doesn't Advertise 2, 18 11, 11 For example, the upper right cell shows that if Fizzo advertises and Pop Hop doesn't advertise, Fizzo will make a profit of $18 million, and Pop Hop will make a profit of $2 million. Assume this is a simultaneous game and that Fizzo and Pop Hop are both profit-maximizing firms. If Fizzo decides to advertise, it will earn a profit of $ million if Pop Hop advertises and a profit of $ million if Pop Hop does not advertise. If Fizzo decides not to advertise, it will earn a profit of S million if Pop Hop advertises and a profit of $ million if Pop Hop does not advertise. If Pop Hop advertises, Fizzo makes a higher profit if it chooses If Pop Hop…
◄ Search 12:47 PM Sun Nov 12 ← Note Nov 12, 2023 Uptown's price strategy The Nash equilibrium occurs when High Low LED RareAir's price strategy High $12 $15 The more favorable outcome would be for $12 Tt ✪ $6 B Low $6 D $8. $15 $8 S O both firms have an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell A. 92% neither firm has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell D. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell B. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell C. O the firms to collude and use the high-price strategy but this strategy requires cooperation. O one firm to take the lead and let the…