In a one-shot game,if you advertise and your rival advertises,you will each earn $5 million in profits.If neither of you advertises,your rival will make $4 million and you will make $2 million.If you advertise and your rival does not,you will make $10 million and your rival will make $3 million.If your rival advertises and you do not,you will make $1 million and your rival will make $3 million.
a.Write the above game in normal form.
b.Do you have a dominant strategy?
c.Does your rival have a dominant strategy?
d.What is the Nash equilibrium for the one-shot game?
e.How much would you be willing to bribe your rival not to advertise?

Question

Quizplus · Accepted Answer

The Answer of In a one-shot game,if you advertise and your rival advertises,you will each earn $5 million in profits.If neither of you advertises,your rival will make $4 million and you will make $2 million.If you advertise and your rival does not,you will make $10 million and your rival will make $3 million.If your rival advertises and you do not,you will make $1 million and your rival will make $3 million.
a.Write the above game in normal form.
b.Do you have a dominant strategy?
c.Does your rival have a dominant strategy?
d.What is the Nash equilibrium for the one-shot game?
e.How much would you be willing to bribe your rival not to advertise?

In a One-Shot Game,if You Advertise and Your Rival Advertises,you