help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive /  following hypothetical payoff matrix to answer (a) and (b): Firm B Strategy Advertise Don't Advertise Firm A Advertise 4,4 20,1 Don't Advertise 1,20 10, 10 (a) Is there a dominant strategy for Firm A and Firm B? Explain

 following hypothetical payoff matrix to answer (a) and (b): Firm B Strategy Advertise Don't Advertise Firm A Advertise 4,4 20,1 Don't Advertise 1,20 10, 10 (a) Is there a dominant strategy for Firm A and Firm B? Explain

Economics

 following hypothetical payoff matrix to answer (a) and (b): Firm B Strategy Advertise Don't Advertise Firm A Advertise 4,4 20,1 Don't Advertise 1,20 10, 10 (a) Is there a dominant strategy for Firm A and Firm B? Explain. (b) What is (are) the Nash equilibrium(s) in the above game? Explain.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

(A) Given that firm A choose advertise, firm B's best response is advertising (4).
Given that firm A choose not advertise, firm B's best response is advertising (20).
So, firm B's best response is advertising as it is always chosen by firm B.

Given that firm B choose advertise, firm A's best response is advertising (4).
Given that firm B choose not advertise, firm A's best response is advertising (20).
So, firm A's best response is advertising as it is always chosen by firm A.

(B) There is only one Nash equilibrium which is (Advertising, Advertising) = (4, 4) as it is chosen by both

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)