Suppose we’ve modelled a firm’s entry decision with a one-shot, simultaneous move game, determined payoffs and found the Nash equilibrium. Suppose with the payoffs we came up with, both firms have a clear dominant strategy such that there is a Nash equilibrium in which both firms play their dominant strategy. However, when we observe the actual actions of the firms, we see that they don’t choose the strategy we predicted and the outcome of the game doesn’t match the Nash equilibrium. Why might this be? Give at least 4 reasons. (Hint: The firms are rational.)

In the game shown below, Player 1 can move Up or Down, and Player 2 can move Left or Right. The players must move at the same time without knowledge of the other player’s move. The first payoff is for the row player (Player 1) and the second payoff is for the column player (Player 2). Solve each game using game theoretic logic.   Player 2 Player 1 Left Right Up 7, 7 2, 9 Down 9, 2 1, 3

The world has changed a bit. Microsoft and Google could still either cooperate or compete in the market for social media video software currently captured by Tik Tok, but their payoffs have changed. The table below shows their profits in billions of USD in each scenario. Use your mouse to point and click on the Nash equilibrium outcome(s). [There may be more than one so make sure you work out all the best response strategies]. Microsoft Cooperate 3,3 4,0 Cooperate O Don't cooperate O Google Don't cooperate O O 0,4 1,1

Suppose that Flashfry and Warmbreeze are the only two firms in a hypothetical market that produce and sell air fryers. 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 fryers.   Warmbreeze Pricing High Low Flashfry Pricing High 11, 11 2, 15 Low 15, 2 8, 8   For example, the lower-left cell shows that if Flashfry prices low and Warmbreeze prices high, Flashfry will earn a profit of $15 million, and Warmbreeze will earn a profit of $2 million. Assume this is a simultaneous game and that Flashfry and Warmbreeze are both profit-maximizing firms. If Flashfry prices high, Warmbreeze will make more profit if it chooses a    price, and if Flashfry prices low, Warmbreeze will make more profit if it chooses a    price.   If Warmbreeze prices high, Flashfry will make more profit if it chooses a    price, and if Warmbreeze prices low, Flashfry will make more profit if…

Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a highway-construction contract and each firm is allowed to bid either $120 million or $130 million. If both firms bid the same price, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero). The non-cooperative outcome in this situation is O A. both firms bid $130 million. B. one firm bids $120 million, the other firm bids $130 million. C. both firms bid $60 million. D. both firms bid $120 million. O E. both firms bid $65 million. OO

PLEASE CHECK THIS  HOW TO SOLVE  PLEASE TEACH  EXPLAIN STEP BY STEP

Suppose that there are only two firms in a market in which demand is given by p = 64 - Q, where Q is the total production of the two firms. Each firm can choose either a low level of output, qL = 15, or a high level of output, qH = 20. The unit cost of production for both firms is $4. Write down the normal-form representation of the game in which the strategic variable for each firm is the quantity of output and the firms make their choices simultaneously. Find the pure strategy Nash equilibrium of this game (quantities produced and market price).

Can you help me solve this problem please?

We can see from the payoff matrix that there are no pure strategy Nash equilibrium in this game because at least one firm would always have an incentive to change its behavior. ​ From​ Nash's​ theorem, we know there must be at least one Nash equilibrium so there must be a mixed strategy Nash equilibrium for this game.   Find the mixed strategy Nash equilibrium by first deleting all dominated strategies in the game   What's the expected payoff to Firm 1 in the equilibrium?

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,…