The following matrix gives the profits (in thousands of dollars)for Firm 1 and Firm 2 from high-price,medium-price,and low-price pricing strategies:
Table 10-1

-What is the difference between a constant-sum game and a zero-sum game?
A)In a constant-sum game,the players' payoffs are in complete conflict with each other unlike a zero-sum game.
B)The equilibrium payoffs in a constant-sum game add up to the same sum,unlike in a zero-sum game.
C)There is no stable equilibrium in a constant-sum game,unlike in a zero-sum game.
D)The actions taken by each player is symmetrical in a constant-sum game,unlike in a zero-sum game.
E)The equilibrium payoff in a constant-sum game is higher than the equilibrium payoff in a zero-sum game.

Question

The following matrix gives the profits (in thousands of dollars)for Firm 1 and Firm 2 from high-price,medium-price,and low-price pricing strategies:
Table 10-1
 
-What is the difference between a constant-sum game and a zero-sum game?
A)In a constant-sum game,the players' payoffs are in complete conflict with each other unlike a zero-sum game. 
B)The equilibrium payoffs in a constant-sum game add up to the same sum,unlike in a zero-sum game. 
C)There is no stable equilibrium in a constant-sum game,unlike in a zero-sum game. 
D)The actions taken by each player is symmetrical in a constant-sum game,unlike in a zero-sum game. 
E)The equilibrium payoff in a constant-sum game is higher than the equilibrium payoff in a zero-sum game.

Quizplus · Accepted Answer

In a constant-sum game, the sum of payoffs remains constant regardless of the strategy chosen by the players, whereas in a zero-sum game, the sum of payoffs is equal to zero, meaning that what one player gains, the other player loses. Therefore, the equilibrium payoffs in a constant-sum game add up to the same sum, and this is not the case in a zero-sum game.

The Following Matrix Gives the Profits (In Thousands of Dollars)for