Takashi Hashiyama, president of the Japanese electronics firm Maspro Denkoh Corporation, was torn between commissioning Christie’s or Sotheby’s to auction the company’s $20 million art collection, which

a. If both firms move simultaneously, does either firm have a dominant strategy? Explain.

b. What are the Nash equilibria given that both firms move simultaneously?

c. The U.S. government commits to paying Zenith a lump-sum subsidy of $50 million if it enters this market. What is the Nash equilibrium?