Explore BrainMass
Share

Explore BrainMass

    Nash Equilibrium

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Dominant Strategy/Nash Equilibrium

    Firm 2

    Firm 1
    Price High Price Low
    Price High 400, 350 -80, 800
    Price Low 800, -100 200,200

    a) Does either firm have a dominant strategy, and if so, what it is?
    b) What is the Nash equilibrium of this game?

    © BrainMass Inc. brainmass.com October 10, 2019, 3:54 am ad1c9bdddf
    https://brainmass.com/economics/game-theory/dominant-strategy-nash-equilibrium-440877

    Solution Preview

    1. Each firm does have a dominant strategy which is PRICE LOW. This is ...

    Solution Summary

    The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. All the steps are clearly shown. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.

    $2.19