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Hi, please I really need help with this Maritime Economics matter, thanks. Any information you know even if general would be great ! Question 1

Hi, please I really need help with this Maritime Economics matter, thanks. Any information you know even if general would be great !

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Question 1 Two oligopolistic shipyards A and B are considering going out of shipbuilding business and selling their assets. Each considers what happens if the other goes out of shipbuilding business. The payoff matrix below shows the net gain or loss to each shipyard. Shipyard A Stays in Sells business business A gets $9 A gets $7 million million Stays in B gets $7 B gets $15 business million million Shipyard B A gets $15 A gets $1 million million Sells B gets $8 B gets $3 business million million a) Discuss whether shipyards A and B have a dominant strategy. b ) Is there a Nash equilibrium? Explain why/why not. [6+4=10 marks]

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