) There are two cola companies, Pepsi and Coke, that each own a vending machine in the dormitory. Each must decide how to stock its machine. They can fill the machine with diet soda, regular soda, or a combination of the two. The payoffs are in the strategic form of the game presented below. Соса-Cola Diet Both Classic Diet 25, 25 50, 30 50, 20 Реpsi Both 30, 50 15, 15 30, 20 Classic 20, 50 20, 30 10, 10 a) What strategies survive iterated elimination of strictly dominated strategies? b) What are the pure-strategy Nash equilibria?

) There are two cola companies, Pepsi and Coke, that each own a vending machine in the dormitory. Each must decide how to stock its machine. They can fill the machine with diet soda, regular soda, or a combination of the two. The payoffs are in the strategic form of the game presented below. Соса-Cola Diet Both Classic Diet 25, 25 50, 30 50, 20 Реpsi Both 30, 50 15, 15 30, 20 Classic 20, 50 20, 30 10, 10 a) What strategies survive iterated elimination of strictly dominated strategies? b) What are the pure-strategy Nash equilibria?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter15: Strategic Games

Section: Chapter Questions

Problem 3MC

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