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Business, 12.02.2020 01:13 angel34emb
Two gas stations are competing on one corner. Each firm is trying to pick a strategy. The market conditions are such that they face the following payoffs: Station2 A 0 4 2 55 3 B1 23 1 4 0 (a) Does either stations have any dominant or domi- nated strategies? (b) If the stations choose their actions simultaneously, what are the possible Nash equilibria, and what would be the payoffs? (c) If station 1 moves first, what is the Nash equilib- rium? Did they increase their payoff over part (b)? (d) If station 2 moves first, what is the Nash equilib- rium? Did they increase their payoff over part (b)?
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