Dominant Strategy/Nash Equilibrium
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?
1. Each firm does have a dominant strategy which is PRICE LOW. This is ...
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.