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1. (Dominant Strategy; Dominant Strategy Equilibrium; Nash Equilibria) In the late 2000s, Boeing decided to build a new plant to manufacture the Boeing 787 Dreamliner.
1. (Dominant Strategy; Dominant Strategy Equilibrium; Nash Equilibria) In the late 2000s, Boeing decided to build a new plant to manufacture the Boeing 787 Dreamliner. Many areas were hoping that Boeing would decide to build the plant in their state. To attract Boeing, the states considered offering large tax incentives. Assume that two states were under serious consideration by Boeing: Washington and South Carolina. Also assume that each state had two options: no incentive or offer an incentive. Notice that in the payoffs that follow, Boeing selects Washington if both states offer an incentive. (12 points) South Carolina(SC) No Incentive Incentive W gets 10 W gets 0 No Incentive Washington SC gets 0 SC gets 15 (W) W gets 5 W gets 5 Incentive SC gets 0 SC gets 0 a) Does Washington have a dominant strategy? If so, what is it? Explain your answer. b) Does South Carolina have a dominant strategy? If so, what is it? Explain your answer. c) Is there a dominant strategy equilibrium? If so, what is it? Explain your answer. d) Are there any Nash equilibria in this game? If so, what are they? Explain your
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