inergy 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? Reas
inergy 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? Reas
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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.

Transcribed Image Text:Dinaco
High
Budget
Low
Budget
High budget
Synergy gets €20 mill.
Dinaco gets €30 mill
Synergy
Synergy gana 30 millones
de euros
Dinaco gets nothing
Low budget
Synergy gets nothing
Dinaco gets €70 mill
Synergy gets €40 mill.
Dinaco gets €50 mill.
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