What Are the Payoffs in the Typical Duopoly Game
What are the payoffs in the typical duopoly game? A. Increased economies of scale. B. Increased barriers to entry. C. Product differentiation. D. Profits. Answer the next question based on the following payoff matrix for a carolacosplay.us numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy Refer to the above payoff carolacosplay.us both firms collude to maximize joint profits,the total profits for .
Using the Bertrand model to explore competitive pricing in a market dominated by two firms, players engage in what are the payoffs in the typical duopoly game wars with the unknown manager of the competing business in order to be attract consumers and maximize profits.
Set a higher price than the other firm and risk yielding the entire market to your rival; set the same price, and the companies could share both the market and profits. Alternatively, if either firm typocal its price, even a little, they stand to gain the whole market and substantially larger profits. But, like most economic theories, the Nash-equilibrium strategy and bargaining problems it generates must be executed in a simulated marketplace to truly be understood.
NOTE: The competing firm is managed by another student in the class who has been randomly matched with themand neither player knows the identity of the other. Both students have the same profit table and receive the same set of instructions. After each student submits their prices, they will both learn the prices that were selected and the profits earned. Repeated Duopoly is easy to learn, simple to play, and teaches complicated economic concepts in a uniquely exciting typicaal Skip to content Skip to main menu Prof.
Joe Harrington Competitive, fast-paced and thought-provoking, this game empowers students to manage one how to make play dough cooked two firms in a Bertrand duopoly as they set their prices to maximize profits.
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For example, in the cell with q 1 = 4 and q 2 = 3, the price is p = 12 - q 1 - q 2 = 5, so the profit of firm 1 is p 1 (4, 3) = 5 × 4 = 20 and the profit function for firm 2 is p 2 (4, 3) = 5 × 3 = Figure 1: Simple duopoly game payoff table. There are two things that you will want to note about the payoff table in figure 1. This paper compares the leader and follower payoff in a duopoly game, as they arise in sequential play, with the Nash payoff in simultaneous play. The payoff matrix for the duopoly game in pricing strategies has the same from GUATEMALA at Universidad de San Carlos de Guatemala.
If both firms cheat then they each earn zero economic profit. In this game what is the Nash equilibrium? The industry is a natural duopoly. Suppose that FastNet and SmartCast collude and agree to share the market equally.
C One of the firms complies with the agreement while the other firm cheats, producing more than the agreed amount. D Because the firms are colluding, the profit does not change regardless of whether the firms comply with agreement or cheat on the agreement. D each firm makes a greater economic profit than it would make if it complied with the agreement.
C one firm complies with the agreement while the other cheats to produce more than the agreed amount. The profits for each strategy, regular candy or holiday candy, are summarized in the payoff matrix above. Their sales depend on the choice of color they make as well as the choice their competitor makes.
Their sales are summarized in the payoff matrix above. Using the payoff matrix. C the Nash Equilibrium is for one company to choose pink while the other company chooses orange.
The payoff matrix of economic profits is above. If both firms cheat on the collusive agreement, what amount of economic profit is made by American? If National is able to cheat on the agreement but American complies with the agreement, what amount of economic profit is made by National?
Which of the following is TRUE? D Both Sears and Wal-Mart would jointly be better off if they could each keep their prices high. Sears and Wal-Mart must decide whether to lower their prices based on the profits shown in the table.
This game has. Questions Courses. A Both firms cheat. B Only one firm will cheat. C Neither firm will cheat. D It is impossible to say. A Both firms comply with the agreement. B Both firms cheat on the agreement, producing more than the agreed amount. B the outcome is identical to a monopoly. B both firms comply with the agreement. D both firms cheat to produce less than the agreed amount.
Using the payoff matrix A the only Nash Equilibrium is for both companies to choose pink. B the only Nash Equilibrium is for both companies to choose orange. D there are two Nash Equilibria: either both companies choose pink or both choose orange. C If Wal-Mart lowers its prices, Sears should keep its prices high.
This game has A no Nash equilibrium. B a Nash equilibrium: Sears keeps its prices high and Wal-Mart lowers its prices. C a Nash equilibrium: both Sears and Wal-Mart keep prices high. D a Nash equilibrium: both Sears and Wal-Mart lower prices. Dec 26 AM. Sangeetha C answered on December 28, Answer — A Both firms cheat. In this game the Nash equilibrium is both firms cheat. They have identical costs and one firm's service is a perfect substitute for the other's.
Answer — A Both firms comply with the agreement. In the scenario above, both firms comply with the agreement will maximize the industry's economic profit 69 In the scenario above, if both firms cheat on the agreement, producing more than the agreed amount, then A each firm makes zero economic profit.
C the industry's economic profit is the maximum profit that can be made by the duopoly. Answer — A each firm makes zero economic profit. Suppose that FastNet and SmartCast collude and agree to share Do you need an answer to a question different from the above? Ask your question! Help us make our solutions better. We want to correct this solution.
Tell us more. Was the final answer of the question wrong? Were the solution steps not detailed enough? Was the language and grammar an issue? We appreciate your Feedback Stay Solved :. Didn't find yours? Ask a new question Get plagiarism-free solution within 48 hours. Review Please. Next Previous. Related Questions. C each firm has an incentive to lower its price below the level Soapy Inc. They collude and agree to shar They collude and agree to share the market equally.
Two firms, Faster and Quicker, are the only two producers of sports cars on an island that has no Two firms, Faster and Quicker, are the only two producers of sports cars on an island that has no contact with the outside world.
The firms collude and agree to share the market equally. Which of the following sets of firms is best described as an oligopoly? B equal the average total cost of production. C be the same as the price set by a monopoly. D be the same as the Case The U. The information for lab is given below;. Calculate 1. Let A be the set of 26 letters of the alphabet, in lowercase.
Let S be the set of six-long letter Let S be the set of six-long letter strings, in which letters may repeat. Find the size of each of the following subsets. Your answer can be a number, or a product.
In chickens, the presence of feathers on the legs is due to a dominant allele F , and the absence. In chickens, the presence of feathers on the legs is due to a dominant allele F , and the absence of leg feathers is due to a recessive allele f.
The comb on the top of the head can be either pea-shaped, a phenotype that is controlled by a Supermarkets often receive damaged food products in shipments, which they cannot sell to customers.. Supermarkets often receive damaged food products in shipments, which they cannot sell to customers. ShopAll is a large, multi-state supermarket in the Midwest. When might you use deep palpation during a physical examination? Bimanual palpation? Direct percussion? Indirect percussion?
Explain how the universal precautions and infection control guidelines would apply to the physical examination techniques of How are mistaken behavior, aggression, and challenging behavior similar and different? Consider a C and 1. Assume that dry air has the composition Create an Account and Get the Solution. Log into your existing Transtutors account.
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