Question
Consider a game with two players A and B and two strategies high price and low price. If both players play high price, A will
Consider a game with two players A and B and two strategies high price and low price. If both players play high price, A will earn $5m and B will earn $30m. If both players play low price, A will earn $8m and B will earn $15m. If players A play high price and player B plays low price, A will earn $10m and B will earn $12m. If players A play low price and player B plays high price, A will loss $2m and B will earn $10m. We can conclude that:
the Nash equilibrium is A plays high price and B plays low price.
this is a prisoner's dilemma game.
the Nash equilibrium is A plays high price and B plays low price.
the Nash equilibrium is both players A and B play low price.
the Nash equilibrium is both players A and B play high price.
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