The following payoff matrix represents the long-run payoffs for two duopolists faced with the opt
Question: 3. The following payoff matrix represents the long-run payoffs for two duopolists faced with the option of buying or leasing buildings to use for production. Determine whether any dominant strategies exist and whether or not there is a Nash equilibrium.
| Firm 1 | |||||
| Lease Building | Buy Building | ||||
| Lease | F1 = 500 | F1 = 750 | |||
| Firm 2 | F2 = 500 | F2 = 400 | |||
| Buy | F1 = 300 | F1 = 600 | |||
| F2 = 600 | F2 = 200 | ||||
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Solution: The downloadable solution consists of 1 page
Deliverables: Word Document
Deliverables: Word Document
