Question
Consider the following static game in which Vodacom Group Limited (aSouth African mobile communications compan) and MTC(Namibia telecommunication company) are contemplating to enterAngolan Market.The game
Consider the following static game in which Vodacom Group Limited (aSouth African mobile communications compan) and MTC(Namibia telecommunication company) are contemplating to enterAngolan Market.The game is played once only and the possible payoffs are shown in the below table,with the payoff for Namib Mills being given first.Answer the below questions. N.B. MTCpayoffs are given first.
Vodacom options | |||
Enter | Do not enter | ||
MTC options | Enter | -40, -30 | 5, 50 |
Do not enter | 40, 0 | 2, 2 |
a)What is the dominant strategy for each player?
b)What is the Nash equilibrium/equilibria for this game ?
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