Nash equilibrium

I selected answer "B", which was surprisingly incorrect.  What say you?  What would you pick as the correct choice?

Two firms X and Y compete with each other. Firm X can produce one of three products X1, X2, or X3. Similarly, firm Y can produce one of three products Y1, Y1, and Y3. Each firm's profit depends on its own and its competitor's decision about which product to produce. These profits are given in the table below where each cell presents profits corresponding to a pair of chosen strategies with the first number being the profit of firm X and the second being the profit of firm Y. For example, if X chooses to produce X3 and Y chooses to produce Y1, the profit of X will be $15 and the profit of Y will be $20. The firms make their product choice decisions simultaneously and independently of each other. Y1 Y2 Y3 X1 0, 0 12, 8 16, 16 15, 20 18, 9 20, 15 8, 12 18, 18 9, 18 X2 X3 11) Does this game have any equilibrium in dominant strategies? If yes, find all of them. 12) In addition to the equilibria (if any) you found in the previous question, does this game have any other equilibria? If yes,…

Suppose that Snapface and Instashot are the only two firms in a hypothetical market that produce and sell polaroid cameras. The following payoff matrix gives profit scenarios for each company (in millions of dollars), depending on whether it chooses to set a high or low price for cameras. Snapface Pricing High Low For example, the lower-left cell shows that if Snapface prices low and Instashot prices high, Snapface will earn a profit of $18 million, and Instashot will earn a profit of $2 million. Assume this is a simultaneous game and that Snapface and Instashot are both profit-maximizing firms. Instashot Pricing High Low 11, 11 2, 18 18, 2 10, 10 If Snapface prices high, Instashot will make more profit if it chooses a high price, and if Snapface prices low, Instashot will make more profit if it chooses a price. If Instashot prices high, Snapface will make more profit if it chooses a chooses a ▼ price. Considering all of the information given, pricing high If the firms do not collude,…

Suppose two firms A and B compete against each other in a Cournot fashion by choosing their quantities. What is the Nash Equilibrium of the game if both firms have a constant marginal cost of 2 and the price in the market is: p(qa + qB) = 20 – 2(qA + qB). O (3, 3) O (2, 2) O (4, 4) None of the other answers are correct (5, 5)

Refer to the accompanying payoff matrix. Which of the following is a Nash equilibrium? Company A Strategy 1 Strategy 2 Strategy 1 Company A's Profit: $8 million Company B's Profit: $9 million Company B Company A's Profit: $10 million Company B's Profit: $8 million None of the above, Strategy 2 Company B's Profit: $8 million Company A's Profit: $7 million Company B's Profit: $7 million Company A's Profit: $8 million Company A chooses Strategy 1 and Company B chooses Strategy 1. Company A chooses Strategy 2 and Company B chooses Strategy 2. Company A chooses Strategy 1 and Company B chooses Strategy 2. Company A chooses Strategy 2 and Company B chooses Strategy 1.

Imagine that there are two snowboard manufacturers (FatSki and WideBoard) in the market. Each firm can either produce ten or twenty snowboards per day. The table below (see attached) shows the profit per snowboard for each firm that will result given the joint production decisions of these two firms. Draw the game payoff matrix for this situation.  Does either player have a dominant strategy? If so, what is it?  What is the Nash equilibrium solution and how many boards should each player produce each day?  Since FatSki and WideBoard must play this game repeatedly (i.e. make production decisions every day), what strategy would you advise them to play in order to maximize their payoff over the long term?

If you advertise and your rival advertises, you each will earn $4 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $1 million and the non-advertising firm will earn $5 million. If you and your rival plan to be in business for only one year, the Nash equilibrium is Group of answer choices for each firm to advertise. for neither firm to advertise. for your firm to advertise and the other not to advertise. none of the provided answers. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

where is the nash equilibrium? find out the dominant strategy. it was discovered that two domestic manufacturing companies were fixing prices. if each company is silent, there is no penalty, but production and business are disrupted due to continuous investigation by the Fair Trade Commission. The penalty for revealing the estimated loss due to the investigation and collusion is as follows:                                            Firm 2                             Silence                 Disclosure      Silence            -200, -200            -590, 0      Firm 1 Disclosure            0, -590                  -450, -450            fine( a hundred million won)

The payoff matrix of economic profits, below, displays the possible outcomes for Coles (C) and Woolworth (W) who are involved in a game of whether to implement or not implement new warehouse technologies. The payoffs in dollars are indicated in the matrix below, and the companies are unable to communicate with each other. Coles (C) Implement Not Implement C: $30 million C: $10 million Implement W: $30 million W: $30 million Woolworth (W) C: $20 million C: $10 million Not Implement W: $10 million W: $20 million (a) With reference to the payoff matrix, work out whether each company has a dominant strategy and what that dominant strategy is, if it exists. (b) Explain with reference to the above scenario, what the Nash Equilibrium is, if there is any? (c) Is this a Prisoner's dilemma game? Explain why or why not.