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What is a dominant strategy

Assignment Help Basic Computer Science
Reference no: EM132293004

Consider the following game:                                                                Company A

                                                                                     Advertise                    Don't Advertise

                                    Advertise                                25, 15                                   30, 0

        Company B      Don't Advertise                     15, 20                                    40, 5

1. What is a dominant strategy? Explain.

2. Does each firm have a dominant strategy? If so, explain what that strategy is?

3. If Company B makes the first move, what will be the payoff in equilibrium?

4. What is Nash equilibrium?

5. Explain, where the Nash equilibrium occurs in the payoff matrix above?

Reference no: EM132293004

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