Solve all the parts and add explanation and check answer twice a) Refer to the game in the figure below. Which strategies survive for Player 1 after iterated elimination of strictly dominated strategies? Write your answer as a comma-separated list ofstrategies. Example: if b and c survive, write your answer as b, c.b)Refer to the game in the figure below. Which strategies survive for Player 1 after iterated elimination of weakly dominated strategies? Write your answer as a comma-separated list ofstrategies. Example: if b and c survive, write your answer as b, c.c) Refer to the game in the figure below. Which strategies survive for Player 2 after iterated elimination of weakly dominated strategies? Write your answer as a comma-separated list ofstrategies.Player 2Player 1 Player 2Xy2a5,23,42, 1b4,43,23,3Player 1C3,44,40,4d2,31,53,0

Firtsly, let's understand what is strategic dominance? In game theory, strategic dominance (aka…

Answered: a) Refer to the game in the figure…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter26: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 13E

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Suppose that there are only two firms in a market in which demand is given by p = 64 - Q, where Q is the total production of the two firms. Each firm can choose either a low level of output, qL = 15, or a high level of output, qH = 20. The unit cost of production for both firms is $4. Write down the normal-form representation of the game in which the strategic variable for each firm is the quantity of output and the firms make their choices simultaneously. Find the pure strategy Nash equilibrium of this game (quantities produced and market price).
Industrial Organziation game - Business Strategy & Game theory Consider a game with competitive for market-share in a large region (a country or city). Firm 1 initially makes a decision to either compete in the Eastern (E) or Western (W) part of a region, or to opt out entirely (O). Once this decision has been made, Firm 1 and Firm 2 (who is already present in the region) simultaneously make a decision to be aggressive (A) or passive (P) in the region. Denote actions in the Eastern region without a prime (i.e. A and P) and those in the Western region with a prime (i.e. A` and P`). We'll make the following assumptions about these firms - If Firm 1 opts out, its payoff is 8 and the payoff for Firm 2 is 12 If Firm 1 ENTERS the Eastern region both firms receive 9 if both are AGGRESSIVE both firms receive 6 if both are PASSIVE if one plays AGGRESSIVE and the other plays PASSIVE, the aggresive firm gets 5 and the passive firm gets 2 If Firm 1 ENTERS the Western region…
The above table shows the payoffs that either Darrin or Rob receive depending on whether they choose a high or a low price strategy. Who has a dominant strategy? The above table shows the payoffs that either Darrin or Rob receive depending on whether they choose a high or a low price strategy. The predicted outcome is
Two car producers, Firm A operates in Country A and Firm B operates in Country B, are considering producing a new 8-seater Multi-Purpose Vehicle (MPV)for the international market. The payoff matrix is as follows (payoff values are in millions of dollars). The above payoffs imply that the international market demand is large enough to support only one producer. If both firms produce, both will sustain a loss. (i) Explain and solve for the Nash equilibrium in this game. (ii) Suppose the government of Country A decides to subsidise Firm A with $25 million if it produces. Revise the payoff matrix to account for this subsidy. What is the new equilibrium outcome? Compare the two outcomes and discuss the effect of the subsidy.
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where is the nash equilibrium? find out the dominant strategy. it was discovered that two domestic manufacturing companies were fixing prices. if each company is silent, there is no penalty, but production and business are disrupted due to continuous investigation by the Fair Trade Commission. The penalty for revealing the estimated loss due to the investigation and collusion is as follows: Firm 2 Silence Disclosure Silence -200, -200 -590, 0 Firm 1 Disclosure 0, -590 -450, -450 fine( a hundred million won)
Note: Hand written solution is not allowed.
A strategy is a decision rule that describes the actions a player will take at each decision point. The normal-form game indicates the players in the game, the possible strategies of the players, and the payoffs to the players that will result from alternative strategies. In the game presented in Table Normal-Form Game, does player B have a dominant strategy? What is the secure strategy for player B in the game presented in Table Normal-Form Game?
Is there a Nash Equilibrium for this game? If so, what is it? O The Nash Equilibrium is for both first to choose the high price. O The Nash Equilibrium is for both first to choose the low price. O The Nash Equilibrium is for Chevron to choose the high price while Shell chooses the low price. O The Nash Equilibrium is for Shell to choose the high price while Chevron chooses the low price. O There is no Nash Equilibrium for this game.
Two firms are considering simultaneously developing a new product for a market. The costs of developing the product are $10m but there will only be revenue in the market of $40m if only one of the firms develops the product. If both firms develop the product then earnings/revenues will be competed away. a) Capture this entry game in a payoff matrix. b) What is the Nash equilibrium and why? Please provide explanation. c) Does either firm have a dominant strategy? Please provide explanation.
The following market is a duopoly populated only by the companies Alpha and Beta. The pay-off matrix immediately below shows the combinations of pricing strategies available to the two companies. The numbers represent millions of dollars in profit. (The negative sign indicates a loss.) Assuming Beta has a first mover advantage, in a one-shot game, what is liekly to be the Nash equilibrium? Explain your answer. Alpha High price Low price High price 250, 200 200, 100 Beta Low price 50, 150 100, 250

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