Suppose that nike and adidas are the only sellers of, Ask an Expert

Economics

Suppose that Nike and Adidas are the only sellers of athletic footwear in the United States. They are deciding how much to charge for similar shoes. The two choices are "Low" and "High". The payoff (profit as million) 2X2 matrix is as follows:

a. Is there a dominant strategy for Nike? Is there a dominant strategy for Adidas?

b. If Nike is the price leader and the first mover, what will be the Nash equilibrium in the game?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9685132

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