The following provides information for a one-shot game. What are the dominant strategies for firm A and firm B respectively?
A) (low price, high price)
B) (high price, low price)
C) (high price, high price)
D) Neither firm has a dominant strategy.

Question

The following provides information for a one-shot game.  What are the dominant strategies for firm A and firm B respectively?
A) (low price, high price) 
B) (high price, low price) 
C) (high price, high price) 
D) Neither firm has a dominant strategy.

Quizplus · Accepted Answer

Neither firm has a dominant strategy in this one-shot game. The optimal strategy for each firm will depend on the strategy chosen by the other firm, and there is no clear dominant strategy that will always lead to the best outcome for either firm.

The Following Provides Information for a One-Shot Game