Answer to Question #74716 in Economics for Abdu

Question

Represent the above game in normal form/strategic form.

b. Identify the dominant strategy for both firms and the dominant strategy equilibrium. c. Is the above equilibrium Nash equilibrium? Is it Pareto efficient allocation? Why?
d. Assuming the game is one-shoot game and Firm 1 moves first represent it in extended form.

Answer 1

We can' t answer the question without the terms of the game mentioned at the beginning