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The Chicago White Sox and Cubs are competing for Chicago baseball fans, and considering whether to cut ticket prices for this upcoming season (hypothetically...). If
The Chicago White Sox and Cubs are competing for Chicago baseball fans, and considering whether to cut ticket prices for this upcoming season (hypothetically...). If both teams cut ticket prices, then each team gets $400 million in profits. If neither team lowers prices, then each receives $600 million in profits. If only one team cuts prices then its profit is $800 million, and the profits for the other team are $200 million. What is the strictly dominant strategy for each team, and what is the Nash equilibrium of this game?
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