Business
Business, 18.11.2019 22:31, oasmith2005

Consider a two-player game between child’s play and kid’s korner, each of which produces and sells swing sets for children. each player can set either a high or a low price for a standard two-swing, one-slide set. if they both set a high price, each receives profits of $64,000 per year. if one sets a low price and the other sets a high price, the low-price firm earns profits of $72,000 per year, while the high-price firm earns $20,000. if they both set a low price, each receives profits of $57,000.verify that this game has a prisoners’ dilemma structure by looking at the ranking of payoffs associated with the different strategy combinations (both cooperate, both defect, one defects, and so on). what are the nash-equilibrium strategies and payoffs in the simultaneous-play game if the players meet and make price decisions only once?

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Consider a two-player game between child’s play and kid’s korner, each of which produces and sells s...

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