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Q. In a one-shot game, if you advertise and your rival advertises, you will earn $7 million and your rival will earn $2 million in profits. If neither of you advertise, your rival will make $4 million and you will make $2 million. If you advertise and your rival does not, you will make $8 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.

Here are my questions:

- What is above game in normal form?

- Is re a dominant strategy? If yes, what is it?

- Does rival have a dominant strategy? If yes, what is it?

- What is Nash equilibrium for one-shot game?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9307666

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