How much would willing to bribe rival not to advertisement

Reference no: EM13242210

In a one-shot game, if you advertise and your rival advertises, you will each earn $5 million in profits. If neither of you advertise, your rival will make $4 million and you will make $2 million. If you advertise and your rival does not, you will make $10 million and your rival will make $3 million. If your rival advertises and you do not, you will make $1 million and your rival will make $3 million.

(a) Write the above game in normal form.

(b) Do you have a dominant strategy?

(d) What is the Nash equilibrium for the one-shot game?

(e) How much would you be willing to bribe your rival not to advertise?

Reference no: EM13242210

Questions Cloud

How big will each firms accounting profit per unit be : A firm in a purely competitive industry is currently producing 1000 units per day at a total cost of $450. If the firm produced 800 units per day; its total cost would be $300, and if it produced 500 units per day

How do the different economic systems capitalism and social : How do the different economic systems (capitalism and socialism) differ in the way they answer these three questions - What to Produce? How to Produce? and For Whom to Produce?

Why the evidence did not improve the balance of trade : In the floating rate model, a change in the exchange rate is supposed to adjust NX(net exports), until the economy reaches an equilibrium state. However, evidence shows that the exchange rate adjustment process takes years.

Over the last year your boss has noticed that it would be : Over the last year your boss has noticed that it would be useful for your firm to understand how consumers behave when variables in the market change and how these changes affect the total revenue for your product. You have been asked to do an analys..

How much would willing to bribe rival not to advertisement : In a one-shot game, if you advertise and your rival advertises, you will each earn $5 million in profits. If neither of you advertise, your rival will make $4 million and you will make $2 million.

Calculate the work done on system : If the internal energy of a system increases as the result of an adiabatic process, Calculate the work done on or by the system in part (a) if its internal energy increases by 700J

If the price per visit is given to be $25, at what level of : If the price per visit is given to be $25, at what level of visits will the maximum profit position be?What are the profits at this level?

Calculate the speed of a proton and electron : Calculate the speed of a proton after it accelerates from rest through a potential difference of 170V, Calculate the speed of an electron

At what output and price will firm maximize total revenue : (b) At what output and price will the firm maximize total profit (c) Compare the maximum profit obtainable with the profit that the firm would have if it chose a revenue-maximizing strategy.

User Account

All Pages