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2. Two gas stations are competing on one corner. Each firm is trying to pick a strategy. The market conditions are such that they face
2. Two gas stations are competing on one corner. Each firm is trying to pick a strategy. The market conditions are such that they face the following payoffs: Station 2 34 C D E A 3 3 5 1 1 0 Station 1 B 0 2 4 5 2 4 (a) Does either stations have any dominant or domi- nated strategies? (b) If the stations choose their actions simultaneously, what are the possible Nash equilibria, and what would be the payoffs? (c) If station 1 moves first, what is the Nash equilib rium? Did they increase their payoff over part (b)
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