Question 1 (1 point) SavedIf Ferrari thinks that Porsche launches the Targa, then Ferrari's best strategy would be to launch theQuestion 1 options:TargaCarreraCaliforniaSpiderQuestion 2 (1 point) SavedIf Ferrari thinks that Porsche launches the Carrera, then Ferrari's best strategy would be to launch theQuestion 2 options:TargaCarreraCaliforniaSpiderQuestion 3 (1 point) SavedFor Ferrari, launching the Spider isQuestion 3 options:a dominant strategynot a dominant strategya Ciao Bella strategynot a Ciao Bello strategyQuestion 4 (1 point) SavedFor Porsche, launching the Carrera is aQuestion 4 options:a dominant strategynot a dominant strategyVorsprung-durch-Technik strategyNone of the above.Question 5 (1 point) SavedThe Nash equilibrium of the game isQuestion 5 options:California-TargaCalifornia-CarreraSpider-TargaSpider-CarreraQuestion 6 (1 point) The Nash equilibrium of the game isQuestion 6 options:not a prisoner's dilemmathe social optimuma prisoner's dilemmathe result of each car manufacturer having a dominant strategyQuestion 7 (1 point) Assume cooperation were possible. Which deal between Porsche and Ferrari would allow for reaching the social optimum?Question 7 options:None. No cooperation already leads to the social optimum.Porsche pays Ferrari $2 to launch the Spider instead of the California.Ferrari pays Porsche $1 to launch the Targa instead of the Carrera.Both b. and c. are correct.

Porsche vs. Targa The next questions refer to the following game. Porsche and Ferrari compete in the sports car market with new models. Below table shows the firms strategies and payoffs. Porsche Targa Carrera California 1,2 4.3 Ferrari Spider 2.1 3.6