Consider the normal-form game bellow where x > 0. a) For what values of x do both firms have a dominant strategy? What is the Nash equilibrium (or equilibria) in these cases? b) For what values of x does only one firm have a dominant strategy? What is the Nash equilibrium (or equilibria) in these cases? c) Are there any values of x such that such neither firm has a dominant strategy? Is there a Nash equilibrium in such cases?
Consider the normal-form game bellow where x > 0. a) For what values of x do both firms have a dominant strategy? What is the Nash equilibrium (or equilibria) in these cases? b) For what values of x does only one firm have a dominant strategy? What is the Nash equilibrium (or equilibria) in these cases? c) Are there any values of x such that such neither firm has a dominant strategy? Is there a Nash equilibrium in such cases?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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need help to sovle for a,b, and c.
![Question 1
Consider the normal-form game bellow where x > 0.
a) For what values of x do both firms have a dominant strategy? What is the Nash
equilibrium (or equilibria) in these cases?
b) For what values of x does only one firm have a dominant strategy? What is the Nash
equilibrium (or equilibria) in these cases?
c) Are there any values of x such that such neither firm has a dominant strategy? Is
there a Nash equilibrium in such cases?
140
Firm #2
High Price
Low Price
Firm #1
High Price
140, 140
20, 160
Low Price
90+ x, 90- x
50, 50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b7cf7ce-124f-420c-8a2f-d3e813f0a789%2F19dc6a76-f1b3-404e-9852-b7990fbf6386%2F64zt0kp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
Consider the normal-form game bellow where x > 0.
a) For what values of x do both firms have a dominant strategy? What is the Nash
equilibrium (or equilibria) in these cases?
b) For what values of x does only one firm have a dominant strategy? What is the Nash
equilibrium (or equilibria) in these cases?
c) Are there any values of x such that such neither firm has a dominant strategy? Is
there a Nash equilibrium in such cases?
140
Firm #2
High Price
Low Price
Firm #1
High Price
140, 140
20, 160
Low Price
90+ x, 90- x
50, 50
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