-Refer to Figure 2.2, which represents a simultaneous-move, noncooperative, one-time game. If larger payoffs are preferred, which firm has a strictly dominant strategy?
A) Firm A
B) Firm B
C) Both firms
D) Neither firm

Question

-Refer to Figure 2.2, which represents a simultaneous-move, noncooperative, one-time game. If larger payoffs are preferred, which firm has a strictly dominant strategy?
A) Firm A 
B) Firm B 
C) Both firms 
D) Neither firm

Quizplus · Accepted Answer

Both firms have a strictly dominant strategy. Firm A's dominant strategy is to choose High, and Firm B's dominant strategy is to choose Low.