Two Departments, A and B, in your company are choosing whether to implement the Excel or Xeon computer systems. If they choose different computer system it will be hard for them to communicate with each other and projects and performance will suffer. However, A prefers Excel and B thinks Xeon will make their department more productive. The departments will choose the computer systems at the same time. If they choose A's preferred option Department A's payoffs will increase by $20, while B's will improve by $1. The situation is reverse if they both choose Xeon. In that case B's payoff will be $20 while A's will be $1. If they choose separate computer systems they each lose $10. Please construct a payoff matrix for this situation Does Department A have a dominant strategy?
Two Departments, A and B, in your company are choosing whether to implement the Excel or Xeon computer systems. If they choose different computer system it will be hard for them to communicate with each other and projects and performance will suffer. However, A prefers Excel and B thinks Xeon will make their department more productive. The departments will choose the computer systems at the same time. If they choose A's preferred option Department A's payoffs will increase by $20, while B's will improve by $1. The situation is reverse if they both choose Xeon. In that case B's payoff will be $20 while A's will be $1. If they choose separate computer systems they each lose $10.
Please construct a payoff matrix for this situation
Does Department A have a dominant strategy?
Step by step
Solved in 2 steps
