Two wealth management funds - "AAA Investments" and "BBB Investments" are considering to merge. First fund's portfolio managers use Bloomberg terminal for trading, but second fund's portfolio managers use Reuters. As the matrix of the game (given below) shows, after the merge if they all use the same terminal, their benefits/utilities are positive and if the terminal is the same as the one the fund managers have been using previously, those benefits are larger (5 vs 2). If after the merge the fund managers use different trading terminals, none of them gain utility. Below is the matrix of the game.

a. Is there a dominant strategy equilibrium in this game? Explain your answer.

b. Is there a Pareto optimal strategy in this game? Explain your answer.

c. Is there one, multiple or no Nash equilibrium in this game? Explain your answer.

d. Consider now the following change. The AAA investment is a first mover (hence, this is a sequential move game). Draw the game tree and find subgame perfect Nash equilibrium of this game (apply backward induction).

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