two firms make these choices at the same time. The payoffs are given in the normal form game below. Kimberly Clark R&D Not Procter & Gamble Not R&D -1,-1 O None of the above. -5,5 5,-5 4,4 If there are two periods in which the two firms compete, what is the equilibrium in each period? O (R&D, R&D) in both periods where the first strategy is of Procter & Gamble and the second strategy is of Kimberly Clark. O (Not, Not) in the 1st period and (R&D, R&D) in the 2nd period. O (Not, Not) in both periods. O (R&D, Not) in the 1st period and (Not, R&D) in the 2nd period.
two firms make these choices at the same time. The payoffs are given in the normal form game below. Kimberly Clark R&D Not Procter & Gamble Not R&D -1,-1 O None of the above. -5,5 5,-5 4,4 If there are two periods in which the two firms compete, what is the equilibrium in each period? O (R&D, R&D) in both periods where the first strategy is of Procter & Gamble and the second strategy is of Kimberly Clark. O (Not, Not) in the 1st period and (R&D, R&D) in the 2nd period. O (Not, Not) in both periods. O (R&D, Not) in the 1st period and (Not, R&D) in the 2nd period.
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.6P
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Question
Fill in the blanks: Consider the department store market that has two rivals, DJs and Myer. Each firm can choose to either Advertise or Not Advertise. These choices are made simultaneously. The payoffs are given below in the following figure.
Transcribed Image Text:Consider the competition between Procter & Gamble and Kimberly &Clark. Each firm can choose to undertake some R&D to develop some new products or to Not. The
two firms make these choices at the same time. The payoffs are given in the normal form game below.
Procter & Gamble
R&D
Not
R&D
-1,-1
5, -5
19
Not
-5,5
4,4
Kimberly Clark
If there are two periods in which the two firms compete, what is the equilibrium in each period?
O (R&D, R&D) in both periods where the first strategy is of Procter & Gamble and the second strategy is of Kimberly Clark.
O (Not, Not) in the 1st period and (R&D, R&D) in the 2nd period.
O (Not, Not) in both periods.
O (R&D, Not) in the 1st period and (Not, R&D) in the 2nd period.
O None of the above.
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