Scenario 13.16
Consider the pricing game below:
-What is true about dominant strategies in the game in Scenario 13.16?
A) Gelato is a dominant strategy for both firms.
B) Yogurt is a dominant strategy for Gooi only.
C) Yogurt is a dominant strategy for Ici only.
D) Yogurt is a dominant strategy for both firms.
E) There are no dominant strategies in the above game.

Question

Scenario 13.16
Consider the pricing game below: 
-What is true about dominant strategies in the game in Scenario 13.16?
A) Gelato is a dominant strategy for both firms. 
B) Yogurt is a dominant strategy for Gooi only. 
C) Yogurt is a dominant strategy for Ici only. 
D) Yogurt is a dominant strategy for both firms. 
E) There are no dominant strategies in the above game.

Quizplus · Accepted Answer

There are no dominant strategies in this game. Both firms have two possible choices (Gelato or Yogurt) and the payoffs depend on the choices made by both firms. Without knowing the other firm's choice, there is no single optimal strategy for each firm. The best decision depends on the other firm's choice, making it a game of strategic interaction.

Scenario 13.16 Consider the Pricing Game Below