Business
Business, 19.11.2019 02:31, Haleysaraya1

Uppose there are only two firms that sell tablets: padmania and capturesque. the following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its tablets. capturesque pricing high low padmania pricing high 11, 11 3, 15 low 15, 3 9, 9 for example, the lower-left cell shows that if padmania prices low and capturesque prices high, padmania will earn a profit of $15 million, and capturesque will earn a profit of $3 million. assume this is a simultaneous game and that padmania and capturesque are both profit-maximizing firms. if padmania prices high, capturesque will make more profit if it chooses a price, and if padmania prices low, capturesque will make more profit if it chooses a price. if capturesque prices high, padmania will make more profit if it chooses a price, and if capturesque prices low, padmania will make more profit if it chooses a price. considering all of the information given, pricing high a dominant strategy for both padmania and capturesque. if the firms do not collude, what strategies will they end up choosing? both padmania and capturesque will choose a high price. padmania will choose a low price, and capturesque will choose a high price. both padmania and capturesque will choose a low price. padmania will choose a high price, and capturesque will choose a low price. true or false: the game between padmania and capturesque is not an example of the prisoners’ dilemma. true

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Uppose there are only two firms that sell tablets: padmania and capturesque. the following payoff m...

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