ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:Suppose that Panasonic and LG are the only two firms that can produce a new type of
holographic TV. The payoffs (in millions of dollars) from entering this product market are shown in
the payoff matrix to the right.
If both firms move simultaneously, does either firm have a dominant strategy?
A. Both firms have a dominant strategy, which is to enter.
B. Neither firm has a dominant strategy.
C. Both firms have a dominant strategy, which is not to enter.
D. Panasonic has a dominant strategy, which is not to enter, but LG does not have a
dominant strategy.
E. Panasonic has a dominant strategy, which is to enter, but LG does not have a dominant
strategy.
C
Enter
LG
Do Not Enter
Enter
- 150
0
Panasonic
- 150
1500
Do Not Enter
1,500
0
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