EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 12, Problem 12.1P
a)
To determine
To find: The Nash equilibrium or equilibria of the game.
b)
To determine
the label of actions to make the pricing game is a quantity game like Cournot.
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Students have asked these similar questions
Two firms operating in the same market must decide between charging a high price or a low
price. The Payoffs are as below. Firm A's profit is listed before the comma, B's profit after the
comma.
Firm B
Firm A
Low Price
High Price
Low Price
16, 17
7, 28
High Price
28, 7
22, 22
If each firm tries to choose a price that is optimal, regardless of the other firm's price, what is
the Nash equilibrium? Does either firm have a dominant strategy?
The following is a static game:
Convert this game into dynamic form game.
Find the Nash equilibrium and subgame perfect Nash equilibrium of this game.
If you consider this game as dynamic then what kind of dynamic game is this.
The attached diagram depicts two firms controlled by Jacob and Elsa, and two potential actions each firm might take. Payoffs
from action combinations appear in the normal-form depiction of the game played by Jacob and Elsa. What is the Nash
equilibrium of the game (Jacob's strategy listed first)?
a
b
Jacob's
Actions
d
Dont' Advertise
Advertise, Advertise
Advertise
Don't Advertise
J=300
J=400
Don't advertise, Don't advertise
Elsa's Actions
Don't advertise (Jacob), Advertise (Elsa)
с Advertise (Jacob), Don't Advertise (Elsa)
E=200
Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.
E=50
Advertise
J=100
J=200
E=300
E=100
Chapter 12 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 12.2 - Prob. 1TTACh. 12.2 - Prob. 2TTACh. 12.2 - Prob. 1MQCh. 12.2 - Prob. 2MQCh. 12.2 - Prob. 1.1TTACh. 12.2 - Prob. 2.1TTACh. 12.2 - Prob. 1.1MQCh. 12.3 - Prob. 1MQCh. 12.3 - Prob. 2MQCh. 12.3 - Prob. 1TTA
Ch. 12.3 - Prob. 2TTACh. 12.3 - Prob. 1.1MQCh. 12.3 - Prob. 2.1MQCh. 12.3 - Prob. 1.1TTACh. 12.3 - Prob. 2.1TTACh. 12.4 - Prob. 1TTACh. 12.4 - Prob. 2TTACh. 12.5 - Prob. 1MQCh. 12.5 - Prob. 2MQCh. 12.5 - Prob. 1TTACh. 12.5 - Prob. 2TTACh. 12.6 - Prob. 1MQCh. 12.6 - Prob. 2MQCh. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQCh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - Prob. 12.6PCh. 12 - Prob. 12.7PCh. 12 - Prob. 12.8PCh. 12 - Prob. 12.9PCh. 12 - Prob. 12.10P
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