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    Game Theory - Identify dominant strategy & Nash equilibrium

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    Scenario A Consider the following game: Payoffs are in millions of dollars.
    Camden Inc.
    Put Poison Pill
    In Turbo Tech Dump Cash Assets
    of Zamboni Tech
    ABC Corporation Buy Turbo Tech -$100, -$1 $2, -$0.5
    Buy Zamboni Tech 1, -$1 -$0.5, -$0.5

    .In the game in Scenario A, what is the Nash equilibrium?
    (Points : 3)

    The strategy pair associated with -$100, -$1.

    The strategy pair associated with $2, -$.5.

    The strategy pair associated with $1, -$1.

    The strategy pair associated with -$.5, -$.5.

    There is no Nash equilibrium in pure strategies.

    6. Scenario CC Consider the following game:
    It costs each firm Brokely $3,000 per period to use filters that avoid polluting the lake. However, each firm must use the lake's water in production, so it is also costly to have a polluted lake. The cost to each firm of dealing with water from a polluted lake is $2000 times the number of polluting firms.
    Avale, Corp.
    Pollute Donâ??t Pollute
    Burgess, Inc. Pollute -$4,000, -$4,000 -$2,000, -$5,000
    Donâ??t Pollute -$5,000, -$2,000 -$3,000, -$3,000

    What is true about dominant strategies in the game in Scenario CC?

    "Pollute" is a dominant strategy for both firms.

    "Pollute" is a dominant strategy for Burgess only.

    "Don't Pollute" is a dominant strategy for both firms.

    "Don't Pollute" is a dominant strategy for Burgess only.

    There are no dominant strategies.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:26 am ad1c9bdddf
    https://brainmass.com/economics/game-theory/game-theory-identify-dominant-strategy-nash-equilibrium-377245

    Solution Preview

    See the attached file. Thanks

    Scenario A Consider the following game: Payoffs are in millions of dollars.

    Camden Inc.
    Put Poison Pill
    In Turbo Tech Dump Cash Assets
    of Zamboni Tech
    ABC Corporation Buy Turbo Tech -$100, -$1 $2, -$0.5

    Buy Zamboni ...

    Solution Summary

    This post answers two multiple choice questions on game theory - one on identifying nash equilibrium and one on identifying dominant strategy

    $2.19