please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly Alpha and Beta are the only firms selling gyros in the upscale town of Delphi. Each firm mustdecide on whether to offer a discount to students to compete for customers. If one firm offers adiscount but the other does not, then the firm that offers the discount will increase its profit. Thefigure shows the payoff matrix for this game.Does Beta have a dominant strategy and if so, what is it?OA. Yes, Beta should not offer a student discount.B. There are two dominant strategies: if Alpha offers a student discount then Beta's best betis to not offer a student discount, but if Alpha does not offer a student discount then Betashould offer a student discount.C. Yes, Beta should offer a student discount.OD. No, there is no dominant strategy.OfferAlphaDon't offerOfferAlpha earns$60,000Alpha earns$20,000Beta earns$60,000Beta earns$100.000BetaAlpha earns$100,000Don'tofferBeta earns$20,000Beta earns$80,000Alpha earns$80,000Time Remaining: 00:48:46NextC

Dominant StrategyA dominant strategy is a strategy that is the best choice for a player regardless…

Answered: Alpha and Beta are the only firms…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.6P

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Suppose only two airlines, United and Delta, provide flights between Atlanta and Winston - Salem. Both firms must choose whether to advertise or not advertise. The advertising strategies with corresponding profits are depicted in the payoff matrix to the right. United Airline's profits are in blue and Delta Airline's are in red United Airline's dominant strategy is to and Delta Arline's dominant strategy is to What is the Nash equilibrium for this game? O A. United and Delta will both choose not to advertise. O B. United will choose to advertise and Delta will choose not to advertise. < Previous KalturaCapture....dmg tf00002104_wac.docx W
Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-by-two game is a little harder to solve since firm 2’spreferred strategy depends of what firm 1 does. But firm 1 has a dominantstrategy so this game has one Nash equilibrium. Firm 2 Launch Don’tFirm 1 Launch 60, -10 100, 0 Don’t 80, 30 120, 0 What is the Nash equilibrium of this simultaneous-move game? (b) What would the outcome of this game be if instead firm 1 moved first and then, after seeing what firm 1 chose, firm 2 chose it strategy? In this case firm 1 doesn’t necessarily need to choose a best response, but firm 2 must choose a best response since it moves second.
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Suppose Proctor & Gamble (PG) and Johnson & Johnson (JNJ) are simultaneously considering new advertising campaigns. Each firm may choose a high, medium or low level of advertising. a. What are each firm’s best responses to its rival’s strategies? b. Does either firm have a dominant strategy? c. What is the Nash equilibrium in this game?
How do I determine values for Y that have dominant strategy? What is the Nash equilibirum? If the Market demand for two companies is P=120-Q and marginal cost is 20. How will the payoff matrix with strategies for each that show cournot equilibirum quantity/half of the monopoly quantity look? How do i solve for the nash equilibrium?
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Game Theory. Consider the following scenario: Two cloth manufacturing companies, A and B. Firm A designs a few costumes, and they are confident enough that they will be sold quickly in the market, but after launching their designs, they make very little profit due to a lack of capital to promote their designs. Now firm B uses these designs and makes a significant profit due to its brand value. 1. Demonstrate that the situation IS a game (explain strategic interaction/conflict).
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Is this strategy a sub-game perfect Nash Equilibrium? Player 2: a c e Player 1: A DE C 2 True False A d B e a 2 1 2 1 A D E חח 0 0 1 F -1 1000
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O Macmillan Learning McLaren and Red Bull are competing for the Formula One Constructors' Championship and are deciding whether to increase their spending on their aerodynamic (aero) development. The matrix displays the payoffs to the team that result from each possible choice. Note that, due to other factors, the payoffs are not symmetrical. Assume that each team's goal is to earn as many points as possible. a. Does McLaren have a dominant strategy? If so, what is it? O Yes. Their dominant strategy is to leave aero development spending unchanged. O Yes. Their dominant strategy is to increase aero development spending. O No, they do not have a dominant strategy. b. Does Red Bull have a dominant strategy? If so, what is it? O Yes. Their dominant strategy is to increase aero development spending. Yes. Their dominant strategy is to leave aero Red Bull Raise spending Do not change spending McLaren Increase spending Do not change spending McLaren earns 142 points McLaren earns 360 points…
Question 14 Simultaneous vs. Sequential Game Levi Strauss White Black Violet 20 60 80 White 20 40 60 Wrangler 40 70 Black 60 30 30 40 Violet 80 70 1. Given that the two firms decide on strategies simultaneously find any dominant strategies.

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