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Consider the game shown in the payoff matrix below. Assume this is a simultaneous game played only once, and players do not know what the
Consider the game shown in the payoff matrix below. Assume this is a simultaneous game played only once, and players do not know what the other player is going to choose.
Firm B: Left | Firm B: Right | |
---|---|---|
Firm A: Top | $5 , $6 | $7 , $2 |
Firm A: Bottom | $6 , $4 | $6 , $3 |
- Does Firm A have a dominant strategy? If so, what is it? [ Select ] ["Yes, Firm A's dominant strategy is to choose Bottom.", "No; Firm A does not have a dominant strategy.", "Yes, Firm A's dominant strategy is to choose Top."]
- Does Firm B have a dominant strategy? If so, what is it? [ Select ] ["No; Firm B does not have a dominant strategy.", "Yes, Firm B's dominant strategy is to choose Left.", "Yes, Firm B's dominant strategy is to choose Right."]
- Which outcomes are a Nash Equilibrium in this game? (If applicable, choose the option that includes all Nash Equilibria.) [ Select ] ["Top Right and Bottom Left", "Top Right and Bottom Right", "Bottom Left (Firm A chooses Bottom, Firm B chooses Left)", "Top Left and Bottom Left", "Top Left (Firm A chooses Top, Firm B chooses Left)", "Top Left and Bottom Right", "Top Right (Firm A chooses Top, Firm B chooses Right)", "Bottom Right (Firm A chooses Bottom, Firm B chooses Right)"]
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