mall Dynaco Jains Pynaco gains4. Synergy and Dynaco are the only two firms in a specific high - tech industry. They facethe following payoff matrix as they determine the size of their research budget:Synergy's DeeisionSmall BodgetLange BudgetSynergy gain$420MSymedgyDynaco insLargebudget Dynarogains $30MSynergySmall Dynaco JainsBudget Jains zeroDynae's2erogains $70mSynergyPynaco gainsgains #50MDecisiona. Does Synergy have a dominant strategy? Explain.b. Does Dynaco have a dominant strategy? Explain.c. Is there a Nash equilibrium for this scenario? Explain. (Hint: Look closely at thedefinition of Nash equilibrium.)

a) Dominant strategy is the one which the player always chooses ie irrespective of what other player…

4. Synergy and Dynaco are the only two firms in a specific high - tech industry. They face the following payoff matrix as they determine the size of their research budget: Synergy's Deision Lange Budget Srall bodget Symelgy Dynaco ins Large Synergy gain Dynmeo's budget Dynaro $420M Zero gains $707 lgains $30M Synergy Synergy gains Decision Smell Dynaco gains Pynaco gains $50M Budget Jains zero a. Does Synergy have a dominant strategy? Explain. b. Does Dynaco have a dominant strategy? Explain. c. Is there a Nash equilibrium for this scenario? Explain. (Hint: Look closely at the definition of Nash equilibrium.)

4. Synergy and Dynaco are the only two firms in a specific high - tech industry. They face the following payoff matrix as they determine the size of their research budget: Synergy's Deision Lange Budget Srall bodget Symelgy Dynaco ins Large Synergy gain Dynmeo's budget Dynaro $420M Zero gains $707 lgains $30M Synergy Synergy gains Decision Smell Dynaco gains Pynaco gains $50M Budget Jains zero a. Does Synergy have a dominant strategy? Explain. b. Does Dynaco have a dominant strategy? Explain. c. Is there a Nash equilibrium for this scenario? Explain. (Hint: Look closely at the definition of Nash equilibrium.)

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 4 Match each of the terms to their description: Collusion A. an illegal official arrangment where firms work together B. firms work together Differentiated Products Cartel C. a game where cooperation provides the largest gains D. products have features that separate them from others. E. the branch of mathematics that analyzes decision making Game Theory Prisoner's Dilemma Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ar Type here to search 62°F
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10. please quikcly thanks ! Which of the following situations would create conducive environment for the practice of effective collusive oligopoly? A. Slow increase in the number of potential producers. B. Demand curve becomes less elastic for the collusive oligopoly's product. C. Rivals ignore price cuts but follow price increases. D. All firms avoid nonprice competition.
P&G 1.10 1.20 1.10 - 226 - 215 1.20 - 106 - 89 1.30 - 56 - 37 1.40 - 44 - 25 1.50 - 52 -32 1.60 - 70 -51 - 93 -76 1.70 1,80 - 118 - 102 Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because O A. the firms are rivals. OB. competing maximizes joint firm profits. O C. the game results in cooperation. Click to select your answer. 1.30 - 204 -73 - 19 -6 - 15 - 34 - 59 -87 1.40 -194 - 58 2 S 12 5 3 - 18 -44 -72 1.50 - 183 - 43 15 29 20 -1 - 28 -57 1.60 - 174 - 28 31 46 36 14 -13 -44 1.70 - 165 - 15 47 62 52 30 1 -30 130 15228841517 1.80 - -2 62 68 44
Game Theory Question Consider the following normal form entry deterrence game between an incumbent monopolist and a potential entrant. Potential entrant Stay out 400,0 Enter PH 200,40 Incumbent PL 100,-10 150,0 a) Can you find any pure strategy Nash equilibrium/a in this game? b) Assume playing mixed strategies, find their best response functions and draw them in a diagram. c) Assume the incumbent firm can observe the opponent's choice before he decides and that the potential entrant knows this, will the potential entrant enter? d) Write down the sequential (extensive form) game and find the subgame perfect equilibrium. Explain the outcome. e) How many strategies does each player have?