Explore BrainMass
Share

Game Theory - dominant strategy for each firm

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

3.
Scenario DD Consider the game below:
What kind of game is shown in Scenario DD?
Dominant Paradox.
Dominant game
Prisoner's Dilemma
Cournot's Duopoly Game
It is not possible to tell what kind of game it is because the strategies have not been identified.

Nash game

**(The numbers should be in a box, with Player B across the top & Strategy B1 & Strategy B2 underneath)
Player B
Strategy Strategy
B1 B2
PlayerA: Strategy A1 600,600 100,1000
Strategy A2 1000,100 200,200

**(Player A should be to the left of the box with Strategy A1, followed by Strategy two just underneath).

© BrainMass Inc. brainmass.com October 25, 2018, 4:23 am ad1c9bdddf
https://brainmass.com/economics/game-theory/game-theory-dominant-strategy-for-each-firm-377241

Solution Preview

Player A has a dominant strategy - Strategy A2. Irrespective of whatever strategy B takes, A would always take strategy A2. Player B has a dominant ...

Solution Summary

This post identifies a scenario for a given game situation from game theory.

$2.19
See Also This Related BrainMass Solution

The firm's strategy is explicated.
1. The two leading U.S. manufacturers of high performance radial tires must set their advertising strategies for the coming year. Each firm has two strategies available: maintain current advertising or increase advertising by 15%. The strategies available to the two firms, G and B, are presented in the payoff matrix below.
Firm B
Increase Adv. Maintain Adv.
Firm G Increase Adv. 27, 27 50, 12
Maintain Adv. 12, 50 45, 45

The entries in the individual cells are profits measured in millions of dollars. Firm G's outcome is listed before the
comma, and Firm B's outcome is listed after the comma.
Is there a dominant strategy for each firm? (Answer: Yes or No) What is it?

1. The two leading U.S. manufacturers of high performance radial tires must set their advertising strategies for the coming year. Each firm has two strategies available: maintain current advertising or increase advertising by 15%. The strategies available to the two firms, G and B, are presented in the payoff matrix below.
Firm B
Increase Adv. Maintain Adv.
Firm G Increase Adv. 27, 27 50, 12
Maintain Adv. 12, 50 45, 45

The entries in the individual cells are profits measured in millions of dollars. Firm G's outcome is listed before the
comma, and Firm B's outcome is listed after the comma.
Is there a dominant strategy for each firm? (Answer: Yes or No) What is it?

View Full Posting Details