67 097
Assignments Done
99,3%
Successfully Done
In November 2018

Answer to Question #67442 in Other Economics for saad A. aljibreen

Question #67442
In a simultaneous move game, if both charge the low price (LP) they each earn $5K. If both charge the high price (HP) they each earn $10K. If they charge different prices, the one playing LP earns $15K and the other earns $1K. If the businesses play indefinitely, then a Nash Equilibrium is
a. for one firm to charge a HP forever
b. for your firm charge a LP when the other firm does
c. for each firm to charge HP until the rival does not, and then to charge LP
d. for each firm to charge LP until the rival does not, and then to charge a HP forever

A common solution to a coordination game is
a. to issue threats before the game starts
b. to change the payoffs
c. for one player to accommodate the other
d. for one player to go first
Expert's answer
If the businesses play indefinitely, then a Nash Equilibrium is:
d. for each firm to charge LP until the rival does not, and then to charge a HP forever

A common solution to a coordination game is:
c. for one player to accommodate the other.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions