Are there any strictly dominated strategies

Reference no: EM132150201

Question: Two firms compete in a declining industry. Each firm has three possible choices: 1) exit the industry immediately (and gets a payoff of O); 2) exit at the end of this quarter; 3) exit at the end of next quarter. Each quarter, if both firms are operating, each incurs a payoff of -1; if a firm operates along, it yields a payoff of 2.

a. Write down this game in normal-form representation (matrix-form is fine)

b. Are there any strictly dominated strategies?

c. Find the pure-strategy Nash equilibria.

Reference no: EM132150201

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