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# Dominant Strategy

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Dominant Strategy (see attached document). Thank you.

https://brainmass.com/economics/general-equilibrium/dominant-strategy-70657

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1) Is there a dominant strategy for Firm 1? If so, what is it?
Firm 1's dominant strategy is choosing \$4, because its profit will always be higher than ...

#### Solution Summary

Is there a dominant strategy for Firm 1? If so, what is it?

Is there a dominant strategy for Firm 2? If so, what is it?

Is there Nash equilibrium? If so, what is it?

\$2.19

## Strategy types are assessed. Identify the dominant strategy and Nash equilibrium

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.

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