) There are two cola companies, Pepsi and Coke, that each own a vending machine in the dormitory. Each must decide how to stock its machine. They can fill the machine with diet soda, regular soda, or a combination of the two. The payoffs are in the strategic form of the game presented below. Соса-Cola Diet Both Classic Diet 25, 25 50, 30 50, 20 Реpsi Both 30, 50 15, 15 30, 20 Classic 20, 50 20, 30 10, 10 a) What strategies survive iterated elimination of strictly dominated strategies? b) What are the pure-strategy Nash equilibria?

) There are two cola companies, Pepsi and Coke, that each own a vending machine in the dormitory. Each must decide how to stock its machine. They can fill the machine with diet soda, regular soda, or a combination of the two. The payoffs are in the strategic form of the game presented below. Соса-Cola Diet Both Classic Diet 25, 25 50, 30 50, 20 Реpsi Both 30, 50 15, 15 30, 20 Classic 20, 50 20, 30 10, 10 a) What strategies survive iterated elimination of strictly dominated strategies? b) What are the pure-strategy Nash equilibria?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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