#Assignment Game Theory
#Assignment Game Theory
Name: _________
Player A has two strategies, Yellow and Green, and Player B has two
strategies,
Red and Blue. The game is played simultaneously with both players
playing pure
strategies and being able to see the other player’s actions. The game, with
strategies and payoffs is given by the following payoff matrix:
a. Does either player have a dominant strategy and if so, what is it?
2) In the late 2000s, Boeing decided to build a new plant to manufacture the
Boeing 787 Dreamliner. Many areas were hoping that Boeing would decide
to build the plant in their state. To attract Boeing, the states considered
offering large tax incentives. Assume that two states were under serious
consideration by Boeing: Washington and South Carolina. Also assume that
each state had two options: no incentive or offer an incentive. Notice that
in the payoffs that follow, Boeing selects Washington if both states offer an
incentive.
c. Are there any Nash equilibria in this game? If so, what are they?
a. If they have the following profit matrix for charging low and high prices,
does either firm have a dominant strategy?