1. In the zero-sum game displayed below where the entry represents a gain of Firm 1 and loss of Firm 2, successively eliminate dominated strategies. Find the resulting equilibrium strategies and outcome. Firm 2 Firm 1 C2 C3 RI 8 -10 -7 R2 4 2 R3 -6 10 -9

1. In the zero-sum game displayed below where the entry represents a gain of Firm 1 and loss of Firm 2, successively eliminate dominated strategies. Find the resulting equilibrium strategies and outcome. Firm 2 Firm 1 C2 C3 RI 8 -10 -7 R2 4 2 R3 -6 10 -9

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. In the zero-sum game displayed below where the entry represents a gain of Firm 1 and
loss of Firm 2, successively eliminate dominated strategies. Find the resulting
equilibrium strategies and outcome.
Firm 2
Firm 1
C1
C2
C3
R1
8
-10
-7
R2
4
6
2
R3
-6
10
-9

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