Consider a simultaneous game, where the companies TREX and C2XM have allied to provide transportation services. TREX operates vans and motorcycles, while C2XM operates trucks and cars. Each company can invest in only one of their modes and this decision will impact both players. For example, if TREX invests in vans and C2XM invests in trucks, TREX's payoff is 1 and C2XM's payoff is 0, i.e., payoff(vans, trucks) = (1, 0). Following this notation, the other payoffs are: payoff(motorcycles, trucks) = (-1, -2), payoff(vans, cars) = (0, 1), payoff(motorcycles, cars) = (-2, -1),

>>> Question: If TREX wants the companies to investment in vans and trucks, which strategic moves should TREX employ?

Group of answer choices

A). TREX should COMMIT to invest in vans.

B). No strategic move is needed because the pure strategy Nash equilibrium is vans and cars.

C). TREX should THREAT to invest in motorcycles if C2XM invests in cars.

D). TREX should PROMISE to invest in motorcycles if C2XM invests in trucks.

Part 2:

Why did you choose your answer?