Provide the strategic form of the game

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Reference no: EM133363928

Question: Consider the following static game of complete information. Two restaurants, A and B, are deciding whether to open on Saturday. If only one of them opens, the one that opens earns 10 - c and the one that does not open earns 0. If neither opens, both earn 0. If both open, then both restaurants earn 6 - 0. Suppose 0 < (3. Entry choices are made simultaneously and c is common knowledge. For the questions below, Total Industry Pro?t (TIP) is the sum of both ?rm payo?s. For example, TIP is 12 - 20 if both ?rms enter. Moreover, the outcome that maximizes TIP is the TIP maztm'izing outcome.

a) Provide the strategic form of the game.

b) For what value(s) of c is both ?rms entering the TIP maximizing outcome?

c) For what value(s) of c is neither ?rm entering the TIP maximizing outcome?

d) For what value(s) of c is entering a strictly dominant strategy for both players.

Reference no: EM133363928

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