| Question |
Firm A and Firm B are two non-cooperative firms selling peanuts in the market. They can produce either Spicy or Salty peanuts. The estimated payoff table is shown as follow (Payoff before comma represents Firm A's payoff; Payoff after comma represents Firm B's payoff): Firm B Spicy Salty Firm A Spicy (120, 320) L (220, 290) Salty (250 ,280) L (180, 200) What is (if any) the dominant strategy for each firm? Is there any Nash Equilibrium with pure strategy? What are the maximin strategies for each firm? |
