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Ashley's and Charlie's are two bars near campus Each has a choice between being a classy or cheap bar to attract customers and profits given
Ashley's and Charlie's are two bars near campus Each has a choice between being a classy" or "cheap" bar to attract customers and profits given in the payoff matrix below. Which of the following is true? Classy Ashley's Cheap Charlie's Classy Cheap -10 10 10 20 20 15 20 10 10 10 10 There is no equilibrium in this game - no dominant strategy equilibrium and no Nash equilibrium Charlie's dominant strategy is to play Classy Charlie's dominant strategy is to play Cheap O Both Charlie's and Ashley's play Cheap in the dominant strategy equilibrium In a Nash equilibrium, Ashley's plays Classy
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