Firm A and firm B are battling for market share in two separate markets. Market I is
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a. Compute the complete payoff table. (Firm A has four possible allocations: 3–0, 2–1, 1–2, and 0–3. Firm B has three allocations: 2–0, 1–1, and 0–2.) Is this a constant-sum game?
b. Does either firm have a dominant strategy (or dominated strategies)? What is the predicted outcome?
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Managerial economics
ISBN: 978-1118041581
7th edition
Authors: william f. samuelson stephen g. marks
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