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    Game theory, Nash equilibrium, and prisoner's dilemma

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    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 October 9, 2019, 11:42 pm 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.