Which of the following is the COLLUSIVE OUTPUT in the Game Theory Matrix below? * Firm B Payoff = Expected Profit ($m) High Price Low Price High Price $4m; $4m $-1m, $6m Firm A Low Price $6m; $-1m $1m, $1m Both firms choose High Price Both firms choose Low Price Firm A chooses Low Price; Firm B chooses High Price Firm A chooses High Price; Firm B chooses Low Price

3. The following is an interpretation of the rivalry between the United States (USA) and the Soviet Ünion (USSR) during the cold war. Each side has the choice of two strategies: Aggressive and Restrained. The payoff table is given as follows: USSR Restrained Aggressiveness Restrained 4,3 1,4 USA Aggressiveness 3,1 2,2 a) Consider this game when the two countries move simultaneously. Find all pure strategy Nash equilibria. b) Next consider three alternative ways in which the game could be played with sequential moves: (i) The USA moves first and the USSR moves second. (i) the USSR moves first and the USA moves second. (i) The USSR moves first, and the USA moves second, but the USSR has a further move after the USA moves. For each case, draw the game tree and find the subgame-perfect Nash equilibrium. c) What are the key strategic issues (commitment, credibility and so on) for the two countries. (Note: Be concise. Your answer should not exceed 300 words].

Superstore (S) and Megastore (M) are two competing discount supermarkets.  If neither store advertises, S makes $115 in profits and M makes $165.  If both stores advertise, S makes $80 and M makes $95.  If M advertises and S does not, they make $305 and $55 respectively.  If S advertises and M does not, they make $285 and $65 respectively.  Based on Game Theory, what will the two firms do?  Hint: illustrate the Nash equilibrium to support your answer.

Find the Nash equilibrium strategy and payoff in this simultaneous game. Show your work. Firms can collude (C) or not collude (NC) and their profits in millions are as follows. Please see attached.