For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.

A. Low

Low

B. Low

Low

C. Pricing low is a dominant strategy for both firms.

D. (iv) Both Flashfone and Pictech will choose a low price.

E. True

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

If either firm prices high, the best strategy for the other firm is to charge low. This is because the firm that charges low earns a profit of 15 which is the highest amount of profit that can be earned in this case. If the other firm also charges low, it would earn a profit of 9 which is less than 15

If either firm prices low, the best strategy for the other firm is to charge low. Its this strategy that yields the highest profit for the firm in this case. If the other firm a charges high, it would earn a profit of 3 which is less than 9.

If both firms do not collude (they do not agree on the price to sell), the best strategy is to price low because the payoffs of pricing low (15,9) is greater than the payoff of pricing high (3,11).

It is a prisoners dilemma because the nash equilibrium is not the best option for either firms. The best strategy is colluding and keeping the price high. Hence it is a prisoners' dilemma

I hope my answer helps you

Answer and Explanation:

(1) A dominant strategy is a strategy selected by one player regardless of the other player 's strategy.

According to the question

United dominant strategy is to Advertise, as it contains higher payoff  ($9,000 > $1,000 and $16,000 > $11,000).

While on the other hand, Delta dominant strategy is to Advertise, as it contains higher payoff   ($9,000 > $1,000 and $16,000 > $11,000).

(2) If Delta advertises, the best option for United is to advertise as the payout is higher($9,000 > $1,000).

If Delta does not advertise, the better option for United is to advertise as the payoff is higher($16,000 > $11,000).

The best strategy for Delta as United Advertises is to advertise because the payoff is higher ($9,000 > $1,000).

If United doesn't advertise, the best strategy for Delta is to advertise as the payoff is higher($16,000 > $11,000).

Hence Nash equilibrium is: (United Advertises, Delta Advertises)

Both Flashfone and Pictech will choose a low price.

a.True

Explanation:

By both of them lowering their prices, they can both earn more, but they damage the market, because Pictech will be lowering their prices, thus Flashfone will start to sell less, so the total revenue of the market wil be lowered, but the earnings og Pictech will go up, instead of eing 17 million between both it will decrease, in the normal both will choose a low price to maximize their sells and profits.

From the given Matrix we can see that if videotech is selecting a high price, movietonia has a higher profit when it is charging a low price and this profit is 18. Similarly when videotech is selecting a lower price movietonia again has a higher profit when it is selecting a lower price which is 10. This indicates that movie tonia has a dominant strategy of selecting a low price.

If movietonia is selecting a high price videotech has a a higher pay off of 18 when it is selecting a low price. In case movietonia is selecting a low price videotech again has a higher profit when it is selecting a low price and this profi is 10.

Therefore videotech and movietonia both have dominant strategy of selecting a low price and this implies that low price, low price will be the Nash equilibrium.

In case the two firms are not colluding, both of them will choose a low price.

This is definitely an example of business dilemma game. The statement is true.

Explanation:

Pls look up details of ans in attached file

Explanation:

The question is based on the economics theory named the game theory. Economists frequently use it to analyze the outcomes for adversary firms.

Explanation:

To solve this problem we need to pay attention to the best outcome for each firm given the choices of the other firm. So, when Pictech chooses a higher price, Flashfone should choose between a high or low price. The firms must keep choosing until they run out of options.

To have a dominant strategy, the firms should always choose a low price.

Based on the game theory:

If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) __low___ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)low___ price.

If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)low_price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) ___low___ price.

Considering all of the information given, pricing high (is, is not) __is not a dominant strategy for both Flashfone and Pictech.

They will end up choosing the low price strategy. Both Flashfone and Pictech will choose a low price.

The answer is true, because the prisioner's dilema is a game were both parties know that the outcome can be worse for both. So they rather play in a way that is better for their interests. In the firms' case, they could have choose higher prices, but  they didn't because each of them intented to charge a lower price and outsell the other firm. Meaning that, the one with the lower price, would sell more smartphones.