Firm 1 Silence Disclosure Silence -200, -200 0,-590 Firm 2 Disclosure -590, 0 -450, 450 fine (a hundred million won) 1. Where is the Nash Equilibrium? - find out the dominant strategy O a. (Silence, Silence) = (-200, -200) O b. (Silence, Disclosure) = (-590, 0) c. (Disclosure, Silence) = (0, -590) d. (Disclosure, Disclosure) = (-450, -450)
Firm 1 Silence Disclosure Silence -200, -200 0,-590 Firm 2 Disclosure -590, 0 -450, 450 fine (a hundred million won) 1. Where is the Nash Equilibrium? - find out the dominant strategy O a. (Silence, Silence) = (-200, -200) O b. (Silence, Disclosure) = (-590, 0) c. (Disclosure, Silence) = (0, -590) d. (Disclosure, Disclosure) = (-450, -450)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Firm 1
Silence
Disclosure
Silence
Firm 2
-200, -200
0, -590
Disclosure
-590, 0
-450, -450
fine (a hundred million won)
1. Where is the Nash Equilibrium? - find
out the dominant strategy
a. (Silence, Silence) = (-200, -200)
O b. (Silence, Disclosure) = (-590, 0)
c. (Disclosure, Silence) = (0, -590)
d. (Disclosure, Disclosure) = (-450,
-450)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F264118be-8a98-4c69-8e12-678e09a6a3b9%2F6d89c6f8-445a-4343-a4e1-15544a6e0ce1%2Fu5cfl2q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Firm 1
Silence
Disclosure
Silence
Firm 2
-200, -200
0, -590
Disclosure
-590, 0
-450, -450
fine (a hundred million won)
1. Where is the Nash Equilibrium? - find
out the dominant strategy
a. (Silence, Silence) = (-200, -200)
O b. (Silence, Disclosure) = (-590, 0)
c. (Disclosure, Silence) = (0, -590)
d. (Disclosure, Disclosure) = (-450,
-450)
![4. What is the probability of a chicken
game? - multiply the probabilities of (1-
x)(1-y).
O a. 2/3x1/6=1/9
O b. 5/6x2/3=5/9
O c. 5/6x1/3=5/18
O d. 1/6x1/3=1/18](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F264118be-8a98-4c69-8e12-678e09a6a3b9%2F6d89c6f8-445a-4343-a4e1-15544a6e0ce1%2F4zx8kg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. What is the probability of a chicken
game? - multiply the probabilities of (1-
x)(1-y).
O a. 2/3x1/6=1/9
O b. 5/6x2/3=5/9
O c. 5/6x1/3=5/18
O d. 1/6x1/3=1/18
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