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