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Consider the following static game in which Vodacom Group Limited (a South African mobile communications compan) and MTC (Namibia telecommunication company) are contemplating to enter Angolan Market. The game is played once only and the possible payoffs are shown in the below table, with the payoff for Namib Mills being given first. Answer the below questions. N.B. MTC payoffs are given first.
Vodacom options
Enter
Do not enter
MTC options
-40, -30
5, 50
40, 0
2, 2
a) What is the dominant strategy for each player?
b) What is the Nash equilibrium/equilibria for this game?
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