Game theory: Two competitors produce table water. They have to decide abouttheir price policy and have two options: To sell one bottle at the price of 1 Euro or
at the price of 2 Euros. If the price is 1 Euro, 10000 bottles will be sold, for 2 Euros
only 5000 bottles are sold. Fix costs are 5000 Euros in both companies. If both
companies sell the bottles at the same price, the profit is shared and both companies
sell the same amount of bottles.If one of the competitors offers at 1 Euro and the
other one at 2 Euros, costumers only buy the bottles at the price of 1 Euro and the
other competitor does not sell anything. The following payoff matrix describes the
situation:
Identify the optimal strategy for both companies using the Maximin criterion.
Is there a dominat strategy? Give reasons and define.
Is there an equilibrium in dominant strategies? Give reasons and define.
Is the equilibrium the socially optimal one?
Kann mir einer die Fragen beantworten. Ich Wäre mehr als Dankbar!!!!