Scenario 13.2:
Consider the following game:
-In the game in Scenario 13.2, the equilibrium strategies
A) are for both firms to offer rebates.
B) is for ABC to offer a rebate, and XYZ not to offer a rebate.
C) is for XYZ to offer a rebate, and ABC not to offer a rebate.
D) are for both firms to offer no rebate.
E) does not exist in pure strategies.

Question

Scenario 13.2:
Consider the following game: 
-In the game in Scenario 13.2, the equilibrium strategies
A) are for both firms to offer rebates. 
B) is for ABC to offer a rebate, and XYZ not to offer a rebate. 
C) is for XYZ to offer a rebate, and ABC not to offer a rebate. 
D) are for both firms to offer no rebate. 
E) does not exist in pure strategies.

Quizplus · Accepted Answer

In the given scenario, the equilibrium strategies are for both firms to offer rebates, as this is the dominant strategy for both firms to maximize their payoffs.

Scenario 13.2: Consider the Following Game