Question

The Clifford Company and Scott Inc. both produce belt buckles. The two firms have the choice of producing either large or small belt buckles. The payoffs for Scott Inc. are shown first in each box and the payoffs for the Clifford Company are second in each box. a. In what type of market structure are the two firms operating? Explain. (_____/1) b. Does Scott Inc. have a dominant strategy? Explain. (_____/1) c. Does the Clifford Company have a dominant strategy? Explain. (____/1) d. Is there a Nash Equilibrium? Why or why not? Explain. (_____/1)

Answer 1

Market structure describes how different industries are categorized and distinguished based on how fiercely .

What is the explanations?

A) Duopoly type of market structure are the two firms operating

B) According to the dominant strategy theory, a player will always go for the approach that will result in the best possible result, regardless of the strategies that other players have chosen.

C) Clifford is forced to react to. ACDC's prices, hence they have no dominant strategy.

D) A player can obtain the desired outcome by sticking to their initial strategy, according to the Nash equilibrium, a decision-making theorem in game theory.

• An all-out strategy Nash equilibrium is an action profile with the feature that, provided that every other player j follows aj, no single player I cannot achieve a larger reward by selecting an action different from ai. For instance, in a game with two participants, each player could select one of the two possible

To learn more about Nash equilibrium refer to:

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Answer 2

Market structure describes how various industries are classified and distinguished based on how competitive they are.

What is the explanations?

A) The two firms operating in a duopoly market structure.

B) According to dominant strategy theory, a player will always choose the strategy that will result in the best possible outcome, regardless of the strategies chosen by other players.

C) Because Clifford is forced to react to ACDC's prices, they lack a dominant strategy.

D) According to the Nash equilibrium, a decision-making theorem in game theory, a player can achieve the desired outcome by sticking to their initial strategy.

A full-fledged strategy Nash equilibrium is an action profile with the property that, if every other player j follows aj, no single player I can achieve a greater reward by choosing an action other than ai.

To learn more about Nash equilibrium refer to:

brainly.com/question/17515037

#SPJ1