The two competitors represented in the payoff matrix below each face important strategic

decisions. The payoff to each decision depends upon reactions of the competitor. Firm X can

choose either row in the payoff matrix defined below, whereas firm Y can choose either column.

For firm X the choice is either "up" or "down;" for firm Y the choice is either "left" or "right."

The first number in each cell is the profit payoff to firm X; the second number is the profit payoff to firm Y.

Firm Y

Firm X Competitive Strategy Left Right

Up $75,000; 50,000 $100,000; $40,000

Down $60,000; $70,000 $90,000; $80,000

A. Is there a dominant strategy for X? Is there a dominant strategy for Y? Explain.

B. Is there a secure strategy for X? Is there a secure strategy for Y? Explain.

C. Is there a Nash Equilibrium? Explain.

D. Would this be considered a Prisoner's game?