2 Safeshop and Ikrtsons must each decide how much to price their turkeys in their nyOft thav are...

Question

2 Safeshop and Ikrtsons must each decide how much to price their turkeys in their nyOft thav are published in the week before Thanksgiving. They are both choosing between a km price and a high price. The payoff table below shows ihr profit outcomes for both firms
Safeshop
low high
C
Bensons (ow high
both file are related

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David · Accepted Answer

Answer: 
a. Safeshop’s dominant strategy is neither; it has no dominant strategy 
b. Bertson’s dominant strategy is low 
c. The Nash equilibrium for the simultaneous decision is for to Safeshop to play low and Bertsons to 
play low.  
d.  
Game tree when Safeshop moves first: 
Figure1:
e.

2 Safeshop and Ikrtsons must each decide how much to price their turkeys in their nyOft thav are published in the week before Thanksgiving. They are both choosing between a km price and a high price....

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