Decscribe is the outcome a nash equilibrium

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Reference no: EM13200916

Two firms, Rattler and Sidewinder, produce and sell snakeskin cowboy boots. The following payoff table represents profits in millions of dollars for a simultaneous pricing decision between the two firms. Each firm can choose to charge a Low, Medium, or High price per pair of boots:

Sidewinder's Price
Low Medium High
Low A: $5000, $4400 B: $4000, $4200 C: $4200, $4500
Rattler's Medium D: $6000, $4600 E: $4400, $4400 F: $5000, $4800
Price High G: $3800, $4800 H: $4500, $3200 I: $4800, $3600

a. What is the likely outcome of this decision?

b. Is this outcome a Nash Equilibrium? Why or why not?

c. Is this game a prisoners' dilemma? Why or why not?

Reference no: EM13200916

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