Nash Equilibrium
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1. Please see attached figure are there dominant strategies in this game? What are they? Explain why it is difficult for Upton and Rare Air to achieve and maintain a more favorable cell than the Nash Equilibrium in this single - period game.
2. If the game between Upton and Rare Air is repeated every year and if either is capable of punishing the other for non cooperative behavior, then what cell represents the Nash Equilibrium?
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Solution Summary
Nash Equilibrium is determined.
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1. Please see attached figure are there dominant strategies in this game? What are they? Explain why it is difficult for Uptown and Rare Air to achieve and maintain a more favorable cell than the Nash Equilibrium in this single - period game.
For Uptown, the dominant strategy is Low Price, because its payoff is always higher when the price is set at a low level ($15 > 12 and $8 > 6) no matter ...
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