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Suppose Three Firms Are in an Oligopoly and Each Firm

Question 161

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Suppose three firms are in an oligopoly and each firm has a dominant production strategy.Would it be possible to determine the Nash Equilibrium solely from knowledge about the firms' dominant strategies? Suppose one of the three firms is irrational and plays a strategy other than its dominant strategy.Is it possible to determine the best course of action of the other two firms?

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Yes, the Nash Equilibrium will be where ...

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