# Nash Equilibrium

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?

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

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