Explore BrainMass

Game theory, Nash equilibrium, and prisoner's dilemma

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

Below is a payoff matrix for Intel and AMD. In each cell, the first number refers to AMD's profit, while the second is Intel's. Is there a Nash Equilibrium? Is this an example of the Prisoner's Dilemma?

Please see attached excel matrix.

© BrainMass Inc. brainmass.com December 20, 2018, 3:45 am ad1c9bdddf


Solution Preview

Lower Price Same Price Higher Price
Lower Price -5,-10 -2,6* 15,-15
Same Price 6*,4 7*, 20* 5,-4
Higher Price -12,12 3,15 16*, 20*

The best option for each player, given the other player's move, is ...

Solution Summary

Game theory applied to Intel and AMD; determination of Nash equilibrium and presence of Prisoner's Dilemma.