a) Does Restaurant a) Does Restaurant A have a dominant strategy? If yes, what is it? Explain. B have a dominant strategy? If yes, what is it? Explain.
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- Exercise A.2 . Sinergy and Dinaco are the only two companies in a high-tech industry. They are faced with the following matrix of results when deciding their research budget: After analizing the graph, answer the following questions... a) Does Sinergy have a dominant strategy? Reason your answer. b) Does Dinaco have a dominant strategy? Reason your answer. c) Is there a Nash equilibrium in this scenario? Reason your answer.a. b. Each firm has four alternative strategies, and a certain profit/payoff is associated with each strategy. The numbers in the payoff matrix denote firm A's profit (in thousands of dollars). The total amount of profit that can be earned by the two firms together is $20000. (This is called a "constant sum game.") Firm B's profit is therefore $20000 minus firm A's profit. What strategies will the two firms select? Is the game strictly determined? If so, how much does each firm gain? B's strategies A's strategies ↓ Increase Advertising Decrease Price Increase Price Alter Product Increase Advertising 0 11 8 11 Decrease Price 8 10 6 2 Increase Price 7 12 15 Alter Product 4 15 3 12 Suppose now that due to a change in consumer preferences, firm A's "Increase Price" strategy pays off better than before when firm B elects to "Decrease Price," that is, the payoff rises from 6 to 14. What strategies will the two firms now select? Is the game strictly determined? If so, how much does each firm…9. Little Kona is a small coffee company that is consider- ing entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Little Kona Enter Don't Enter High Price Kona makes $2 million Kona makes zero Big Brew Brew makes $3 million Brew makes $7 million Kona loses $1 million Low Price Kona makes zero Brew makes $1 million Brew makes $2 million
- I need a good explanation on this question please. Is there really a strategy here? I'm confused since mixed strategies are not allowed.COUNTRY B HIGH TARIFF LOW TARIFF HIGH TARIFF $1M $1 M $2M, $1.5 M COUNTRY A LOW $1.5 M, $ 2M $3м, $3 м TARIFF 1. What is the dominant strategy for: a. Country A b. Country B Is there an equilibrium dominant strategy for this game? 2. Find the Nash equilibrium a. Outcome = (High, high) b. Outcome = (High. Low) c. Outcome = (Low, high) d. Outcome = (Low, low) 3. What is the Maximin strategy for Country A and Country B? C.on Mary, UE, BD UF, AC DF, BC UF, BD DE, AC DE, BC Nancy U D Nancy -5,4 Mary -0,2 -6,2 -2.6 Which of the following answers is a subgame perfect Nash equilibrium in this game? Check all that apply. (Answers below are formatted as Mary's strategy, Nancy's strategy.)
- Explain the meaning of a Nash Equilibrium. How does it differ from and equilibrium in dominant strategies?Fred and Naomi are trying to decide how to spend Sunday. Their payoffs in terms of satisfaction are below. Fred's strategy Football Naomi strategy Football Movie There is no dominant strategy Dominant strategy is football Dominant strategy is movie There is no Nash equilibrium 5,3 1,1 Movie 0,0 3,5Which of the following best describes a dominant strategy? Question 4Answer a. The strategy that a player chooses depends on what the other player does b. The strategy that a player chooses minimizes the other player's payoff c. The strategy that a player chooses is independent of what the other player does d. The strategy that a player chooses maximizes joint payoffs for both players
- A. Does either firm have a dominant strategy? B.1.9. What is a mixed strategy in a normal-form game? What is a mixed-strategy Nash equilibrium in a normal-form game?3) Recently, a major question in the news is why the Afghan army collapsed so quickly and unexpectedly in the face of the Taliban offensive. To help understand the situation, consider the following simplified model of the situation. Assume that there are two Afghan soldiers in the same unit. Each can stay and fight the Taliban or desert. If both stay and fight, they will win any battle against the Taliban, which each values at 100 utility. If either soldier deserts, the Taliban wins, which they each values at 0 utility. In addition, if only one soldier stays, that soldier will be killed by the Taliban, which he values at -1000 utility. In addition, the Taliban is offering a bounty to any soldier that deserts. ne soldier does not care about this, and would not take the bounty, while the other values the bounty at 50 utility. a. Draw the game based on this scenario. b. Find all pure strategy Nash equilibria c. Find the mixed strategy Nash equilibrium d. What does this game and the…