Question: 2. Two gas stations are competing on one corner. Each firm is trying to pick a strategy. The market conditions are such that they face

 2. Two gas stations are competing on one corner. Each firm

2. Two gas stations are competing on one corner. Each firm is trying to pick a strategy. The market conditions are such that they face the following payoffs: Station 2 34 C D E A 3 3 5 1 1 0 Station 1 B 0 2 4 5 2 4 (a) Does either stations have any dominant or domi- nated strategies? (b) If the stations choose their actions simultaneously, what are the possible Nash equilibria, and what would be the payoffs? (c) If station 1 moves first, what is the Nash equilib rium? Did they increase their payoff over part (b)

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