Question: Consider the following game, where x > 0: a) For what values of x do both firms have a dominant strategy? What is the Nash
Consider the following game, where x > 0:
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a) For what values of x do both firms have a dominant strategy? What is the Nash equilibrium (or equilibria) in these cases?
b) For what values of x does only one firm have a dominant strategy? What is the Nash equilibrium (or equilibria) in these cases?
c) Are there any values of x such that neither firm has a dominant strategy? Ignoring mixed strategies, is there a Nash equilibrium in such cases?
Firm 2 High Price Low Price Firm1 High Price 140, 140 20, 160 Low Price 90+x, 90- x50, 50
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