# In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy

## Question:

a. Write the above game in normal form.

b. Find each player’s dominant strategy, if it exists.

c. Find the Nash equilibrium (or equilibria) of this game.

d. Rank strategy pairs by aggregate payoff (highest to lowest).

e. Can the outcome with the highest aggregate payoff be sustained in equilibrium?

Why or why not?

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## Step by Step Answer:

**Related Book For**

## Managerial Economics and Business Strategy

**ISBN:** 978-0071267441

7th Edition

**Authors:** Michael R. baye

**Question Details**

Chapter #

**10**Section: conceptual and computational questions

Problem: 2

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