Consider the one-shot, simultaneous move game below, and answer the accompanying questions:

Question

Player & Strategy Firm B
Left Right
Firm A Up 4,4 0,0
Down 0,0 2,2

(a)List the strategies for Firm A and Firm B
(b)State the set of strategy profiles.
(c)Suppose Firm A plays Up. What is Firm B¡¦s best response?
(d)Suppose Firm B plays Right. What is Firm A¡¦s best response?
(e)Does firm A have a dominant strategy?
(f)What is (or are) the Nash equilibrium (equilibria) to this game?
(g)If you are firm A and are given the first move (instead of moving simultaneously), which move would you choose and why?
(h)Would Firm B object to your getting the first move? Explain

Answer 1

There is no question.