Two firms, Allied Corporation and Union, Inc., compete primarily by price. Each firm must choose either a high price or a low price simultaneously. The following payoff table shows the profit each firm would earn in each of the four possible decision combinations:
‪
-Allied's dominant strategy is ____________ (low price, high price, it has no dominant strategy).

Question

Two firms, Allied Corporation and Union, Inc., compete primarily by price. Each firm must choose either a high price or a low price simultaneously. The following payoff table shows the profit each firm would earn in each of the four possible decision combinations:
‪ 
-Allied's dominant strategy is ____________ (low price, high price, it has no dominant strategy).

Quizplus · Accepted Answer

The Answer of Two firms, Allied Corporation and Union, Inc., compete primarily by price. Each firm must choose either a high price or a low price simultaneously. The following payoff table shows the profit each firm would earn in each of the four possible decision combinations:
‪ 
-Allied's dominant strategy is ____________ (low price, high price, it has no dominant strategy).

Two Firms, Allied Corporation and Union, Inc