SuperJ and DuperJ manufacture turbine generators and decide simultaneously whether tocharge a low price PL or a high price PH for their products. If both firms charge PL, theymake a profit of $80m. If both firms charge PH, they make a profit of $100m. When the twofirms charge different prices, the firm charging PL makes a profit of $140m, while the firmcharging PH makes a profit of $25m.a (2). Provide the normal-form representation of the game.b (2). Is there a dominant strategy for SuperJ?c (2). Is there a dominant strategy for DuperJ?d (4). Find the Nash equilibria of the game.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here