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2 / 2 pts Question 1 Topic 5 Quiz . Firm 2 Digital marketing Television marketing Firm 1 Digital marketing 150, 150 50, 100 Television marketing 140, 80 110, 110

Suppose two firms operate in a market, and must choose an optimal marketing strategy: emphasise digital marketing (e.g. through Facebook), or emphasise television marketing (on free to air broadcast channels). The payoffs for the firms in a given period 2 / 2 pts Question 2 Correct! Firm 2 Digital marketing Television marketing Firm 1 Digital marketing 150, 150 50, 100 Television marketing 140, 80 110, 110 Suppose two firms operate in a market, and must choose an optimal marketing strategy: emphasise digital marketing (e.g. through Facebook), or emphasise television marketing (on free to air broadcast channels). The payoffs for the firms in a given period are shown by the payoff matrix above. In this game: Firm 1 has a dominant strategy, while Firm 2 does not have a dominant strategy. Both firms have a dominant strategy. Firm 1 does not have a dominant strategy, while Firm 2 has a dominant strategy. There is no Nash Equilibrium. Neither firm has a dominant strategy.

Suppose two firms are choosing whether to effectively cooperate with each other in a market, by not aggressively discounting their product, or to compete, by discounting their product. The payoffs for the firms in a given period are shown by the payoff matrix above. The game is played 2 / 2 pts Question 3 Correct! Firm 2 Compete Cooperate Firm 1 Compete 90, 90 120, 80 Cooperate 80, 120 100, 100 are shown by the payoff matrix above. The Nash Equilibrium/Equilibria of this game is/are: Two Nash Equilibria: that Firm 1 does Digital Marketing while Firm 2 does Television Marketing AND that Firm 1 does Television Marketing while Firm 2 does Digital Marketing. One Nash Equilibrium: that both firms do Digital Marketing. One Nash Equilibrium: that Firm 1 does Television Marketing while Firm 2 does Digital Marketing. Two Nash Equilibria: that both do Digital Marketing AND both do Television Marketing. One Nash Equilibrium: that Firm 1 does Digital Marketing while Firm 2 does Television Marketing.

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Correct! Never chosen by a player, regardless of the strategy played by the other player. Frequently chosen by a player, regardless of the strategy played by the other player. Never a strategy played in a Nash Equilibrium. Always chosen by a player, regardless of the strategy played by the other player. The one that makes the player worse off, regardless of the strategy chosen by the other player. A Dominant Strategy is the strategy that is 2 / 2 pts Question 4 Correct! as a simultaneous, one-shot game. The Nash Equilibrium/Equilibria of this game is/are: One Nash Equilibrium: that both firms cooperate. One Nash Equilibrium: that Firm 1 competes while Firm 2 cooperates. Two Nash Equilibria: that both firms compete AND both firms cooperate. One Nash Equilibrium: that both firms compete. One Nash Equilibrium: Firm 1 cooperates while Firm 2 competes.

ou Answered Quiz score: 8 out of 10 Is an equilibrium, but not a Nash Equilibrium. Is a Nash Equilibrium. Will be selected by one player at least 50% of the time. Will always be selected by at least one player. Is not a Nash Equilibrium. In the Prisoners' Dilemma game, the strategy the cooperative strategy: 0 / 2 pts Question 5

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